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Accounting Policies of Bombay Burmah Trading Corporation Ltd. Company

Mar 31, 2023

1 Significant accounting policies, key accounting estimates and judgments Corporate information

The Bombay Burmah Trading Corporation, Limited (the ''Corporation'') or ''BBTCL'' or ''Company'' is a public Corporation domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India, BSE Limited (''BSE'') and National Stock Exchange of India Limited (''NSE''). The Corporation''s registered office is located at 9, Wallace Street, Fort, Mumbai -400001. The Corporation was incorporated on 04 September 1863 vide certificate of incorporation number L99999MH1863PLC000002 issued by the Registrar of Companies, Mumbai, Maharashtra. The Corporation is a multi-product and multi-divisional organisation with diverse business interests - plantations (tea and coffee), auto electric components, healthcare and real estate.

1 (A) General information and statement of compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under section 133 of the Companies Act, 2013 (the ''Act'') read with Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 and relevant amendment rules thereafter, including the presentation and disclosure requirements of Division II of Schedule III to the Act and the guidelines issued by the Securities and Exchange Board of India (''SEBI'') to the extent applicable. The significant accounting policies for the years ended 31 March 2023 and 31 March 2022 are consistent.

The revision to standalone financial statements is permitted by Board of Directors after obtaining necessary approvals or at the instance of regulatory authorities as per the provisions of the Act.

All amounts included in the standalone financial statements are reported in Indian Rupees (''?'') in Lakhs unless otherwise stated and rounded up to two decimals. Further, "0" denotes amounts less than one thousands rupees.

These standalone financial statements are separate financial statements of the Corporation under Ind AS 27 "Separate Financial Statements" (''Ind AS 27'').

1 (B) Basis of preparation and presentationBasis of preparation

The standalone financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items that have been measured at as required by relevant Ind AS:

- Certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments);

- Biological assets - measured at fair value less costs to sell; and

- Defined benefit plans and other long term employee benefits plans.

1 (C) Key estimates and judgements

The preparation of standalone financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the standalone financial statements is included in the following notes:

i) Property, plant and equipment:

Property, plant and equipment (''PPE'') represent a significant proportion of the asset base of the Corporation. The charge in respect of periodic depreciation is derived after determining an estimate of the PPE''s expected useful life and the expected residual value at the end of its useful life. Depreciation of PPE is calculated on straight-line basis over the useful life estimated by the management either based on technical evaluation or those prescribed under schedule II of the Act.

ii) Defined benefit plans:

The cost of the defined benefit plans and the present value of the defined benefit obligations are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. In case of compensated absences,employee generally have an unconditional right to avail the accumulated leaves.

iii) Deferred tax:

Deferred tax is recorded on temporary differences between the tax bases of assets and liabilities and their carrying amounts, at the rates that have been enacted or substantively enacted at the reporting date. The ultimate realisation of deferred tax assets is dependent upon the generation of future taxable profits during the periods in which those temporary differences and tax loss carry forwards become deductible. The Corporation considers the expected reversal of deferred tax liabilities and projected future taxable income in making this assessment. The amount of the deferred tax assets considered realisable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

iv) provisions:

Provisions are recognised when the Corporation has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding defined benefit plans) are not discounted to their present value and are determined based on best estimate of the amount required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

v) Evaluation of indicators for impairment of assets:

The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

vi) Biological assets

Management uses inputs relating to production and market prices of tea and coffee in determining the fair value of biological assets.

vii) Income tax

Significant judgments are involved in determining the provision for income tax, including the amount expected to be paid or recovered in connection with uncertain tax positions.

viiijExpected credit loss on financial assets:

On application of Ind AS 109 "Financial Instruments" the impairment provisions of financial assets are based on assumptions about risk of default and expected timing of collection. The Corporation uses judgments in making these assumptions and selecting the inputs to the impairment calculation, based on the Corporation''s past history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

ix) Leases:

Ind AS 116 "Leases" requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Corporation makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Corporation considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Corporation''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

x) Contingent liabilities:

At each balance sheet date basis the management judgement, changes in facts and legal aspects, the Corporation assess the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

xi) Fair value measurement:

Management applies valuation techniques to determine fair value of financial assets and liabilities (where active market quotes are not available). This involves developing estimates and assumptions around volatility and dividend yield etc. which may affect the value of financial assets and liabilities.

xii) Transaction price and amount allocated to performance obligations:

The Corporation consider the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which Corporation expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, goods and service tax). While determining the transaction price, Corporation also considers variable consideration, existence of significant financing component in the contract, noncash consideration and consideration payable to a customer (if any). The transaction price to be allocated to performance obligations is determined basis the terms of individual contracts.

xiii) Control and significant influence:

Subsidiaries are all entities over which the Corporation has control. The Corporation controls an entity when the Corporation is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Associate as an entity over which the investor has significant influence. If the Corporation holds, directly or indirectly through intermediaries, 20% or more of the voting power of the enterprise, it is presumed that the Corporation has significant influence, unless it can be clearly demonstrated that this is not the case. Also, the Corporation does not have significant influence in an enterprise can be demonstrated through following conditions:

(i) The Corporation does not have any representation on the board of directors or corresponding governing body of the investee.

(ii) The Corporation does not participate in policy making process.

(iii) The Corporation does not have any material transactions with the investee.

(iv) The Corporation does not interchange any managerial personnel.

(v) The Corporation does not provide any essential technical information to the investee

Estimates and judgements are continuously evaluated. These are based on historical experience and other factors including expectation of future events that may have a financial impact on the Corporation and that are believed to be reasonable under the circumstances.

1 (D) Details of significant investments in subsidiary and associate companies in accordance with Ind AS 27

Name of the subsidiary,associate and joint venture	principal place of business and country of incorporation	% ownership interest held by the Corporation as at 31 March 2023
subsidiary companies
Afco Industrial & Chemicals Limited	India	100.00%
DPI Products & Services Limited	India	100.00%
Sea Wind Investment and Trading Corporation Limited	India	100.00%
Leila Lands Senderian Berhad	Malaysia	100.00%
Subham Viniyog Private Limited	India	100.00%
Naira Holdings Limited	British Virgin Islands	100.00%
Island Horti-Tech Holdings Pte. Limited	Singapore	100.00%
Leila Lands Limited	Mauritius	100.00%
Restpoint Investments Limited	British Virgin Islands	100.00%
Baymanco Investments Limited	Mauritius	100.00%
Island Landscape & Nursery Pte. Limited	Singapore	100.00%
Innovative Organics Inc.	United States of America	58.80%
ABI Holding Limited	United Kingdom	100.00%
Britannia Brands Limited	United Kingdom	100.00%
Associated Biscuits International Limited	United Kingdom	100.00%
Dowbiggin Enterprises Pte. Limited	Singapore	100.00%
Nacupa Enterprises Pte. Limited	Singapore	100.00%
Spargo Enterprises Pte. Limited	Singapore	100.00%
Valletort Enterprises Pte. Limited	Singapore	100.00%
Bannatyne Enterprises Pte. Limited	Singapore	100.00%
Britannia Industries Limited	India	50.54%
Granum Inc.	United States of America	58.80%
Boribunder Finance & Investments Private Limited	India	50.54%

Name of the subsidiary,associate and joint venture	Principal place of business and country of incorporation	% ownership interest held by the Corporation as at 31 March 2023
Flora Investments Corporation Private Limited	India	50.54%
Gilt Edge Finance & Investments Private Limited	India	50.54%
Ganges Vally Foods Private Limited	India	50.54%
International Bakery Products Limited	India	50.54%
J. B. Mangharam Foods Private Limited	India	50.54%
Manna Foods Private Limited	India	50.54%
Sunrise Biscuit Company Private Limited	India	50.54%
Britannia and Associates (Mauritius) Private Limited	Mauritius	50.54%
Britannia and Associates (Dubai) Private Company Limited	United Arab Emirates	50.54%
Al Sallan Food Industries Company SAOG	Oman	50.54%
Strategic Food International Company LLC	United Arab Emirates	50.54%
Strategic Brands Holding Company Limited	United Arab Emirates	50.54%
Britannia Dairy Holdings Private Limited	Mauritius	50.54%
Britannia Employees General Welfare Association Private Limited ~	India	50.54%
Britannia Employees Medical Welfare Association Private Limited ~	India	50.54%
Britannia Employees Educational Welfare Association Private Limited	India	50.54%
Britchip Foods Limited	India	50.54%
Britannia Bangladesh Private Limited	Bangladesh	50.54%
Britannia Nepal Private Limited	Nepal	50.54%
Britannia Egypt LLC	Egypt	50.54%
Snacko Bisc Private Limited	India	50.54%
Vasana Agrex and Herbs Private Limited	India	50.54%
Strategic Foods Uganda Limited	Uganda	50.54%
Daily Bread Gourmet Foods (India) Private Limited	India	50.54%
Kenafric Biscuits Limited	Kenya	50.54%
Catalyst Britania Brands Limited Associate companies	Kenya	50.54%
Lotus Viniyog Private Limited	India	50.00%

'' in Lakhs, unless otherwise stated
Name of the subsidiary,associate and joint venture	principal place of business and country of incorporation	% ownership interest held by the Corporation as at 31 March 2023
Lima Investment and Trading Company Private Limited	India	50.00%
Roshnara Investment and Trading Company Private Limited	India	50.00%
Cincinnati Investment and Trading Company Private Limited	India	50.00%
Shadhak Investments and Trading Private Limited	India	50.00%
MSIL Investments Private Limited	India	50.00%
Medical Microtechnology Limited	India	50.00%
Harvard Plantations Limited	India	50.00%
Placid Plantations Limited	India	50.00%
The Bombay Dyeing & Manufacturing Company Limited	India	44.43%
Go Airlines (India) Limited *	India	32.61%
Nalanda Biscuit Corporation Limited	India	35.00%
National Peroxide Limited (wef 9^th January 2023)	India	24.28%
The Bombay Burmah Trading Employees'' Welfare Co. Limited	India	42.86%
Sunandaram Foods Private Limited	India	26.00%
* 40.14% on diluted basis i.e. including CCPS
~ Subsidaries limited by guarantee.

1 (E) Summary of significant accounting policiesi) a) Functional and presentation currency

Items included in the standalone financial statements of the Corporation are measured using the currency of the primary economic environment in which the Corporation operates (i.e. the "functional currency"). The standalone financial statements are presented in Indian Rupees (''INR''), which is the functional and presentation currency of the Corporation.

b) Foreign currency transactions and translations

Foreign currency transactions of the Corporation are accounted at the exchange rates prevailing on the date of the transaction. Monetary assets and liabilities are translated at the rate prevailing on the balance sheet date whereas non-monetary assets and liabilities are translated at the rate prevailing on the date of the transaction. Gains and losses resulting from the settlement of foreign currency monetary items and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the standalone statement of profit and loss.

translated into INR at the exchange rates at the dates of the transactions or an average rate if the average approximates the actual rate at the date of transaction.

c) Current versus non-current classification

(i) An asset is considered as current when it is:

a. Expected to be realised or intended to be sold or consumed in the normal operating cycle, or

b. Held primarily for the purpose of trading, or

c. Expected to be realised within twelve months after the reporting period, or

d. Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(ii) All other assets are classified as non-current.

(iii) Liability is considered as current when it is:

a. Expected to be settled in the normal operating cycle, or

b. Held primarily for the purpose of trading, or

c. Due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

(iv) All other liabilities are classified as non-current.

(v) Deferred tax assets and liabilities (net) are classified as non-current assets and liabilities.

(vi) All assets and liabilities have been classified as current or non-current as per the Corporation''s operating cycle and other criteria set out in Schedule III to the Act. Based on the nature of products and services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Corporation has ascertained its operating cycle as twelve months for the purpose of current and noncurrent classification of assets and liabilities.

i) a) Property, plant and equipment (''PPE'')

PPE are stated at historical cost, less accumulated depreciation and impairment losses, if any. Historical costs include expenditure directly attributable to acquisition which are capitalised until the PPE are ready for use, as intended by management. Any trade discount and rebates are deducted in arriving at the purchase price.

The cost of a self-constructed item of PPE comprises the cost of materials, direct labour and any other costs directly attributable to bringing the asset to its intended working condition and estimated costs of dismantling, removing and restoring the site on which it is located, wherever applicable.

I ncome and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognised in standalone statement of profit and loss.

An item of PPE initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use.

Gains or losses arising from disposals of assets are measured as the difference between the net disposal proceeds and the carrying value of the asset on the date of disposal and are recognised in the standalone statement of profit and loss, in the period of disposal.

Items such as spare parts are recognised as PPE when they meet the definition of PPE. Otherwise, such items are classified as inventory.

If significant parts of an item of PPE have different useful lives, then they are accounted for as a separate asset (major components) of PPE. Any gain or loss on disposal of an item of PPE is recognised in the standalone statement of profit and loss.

In case of certain PPE, the Corporation uses different useful life than those specified in Schedule II of the Act which is duly supported by technical evaluation. The management believe that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Depreciation on addition to PPE or on disposal of PPE is calculated pro-rata from the month of such addition or up to the month of such disposal as the case may be.

b) Development plantations

Cost incurred for acquiring new plantations and their upkeep are capitalised until they attain maturity to yield biological produce. Such cost is included under capital work-in-progress and thereafter the same is capitalised as ""Development plantations"" and depreciated over their estimated useful life.

c) Capital work-in-progress and intangible assets under development

Costs incurred during construction or acquisition of qualifying PPE is included under capital work-in-progress and the same gets capitalised in the respective block of PPE on the completion of their construction. No depreciation is charged till the asset is ready to use.

Advances made toward the acquisition or construction of any qualifying PPE outstanding at each reporting date are disclosed as capital advances under "Other non-current assets".

Intangible assets under development include computer software which is build / developed inhouse by the Corporation and are initially measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation and impairment losses, if any.

d) Intangible assets

Intangible assets acquired separately are measured at cost of acquisition. Identifiable intangible assets are recognised when it is probable that future economic benefits attributed to the asset will flow to the Corporation and the cost of the asset can be reliably measured. Computer software is amortised on a straight line basis over the estimated useful economic life. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The amortisation of an intangible asset with a finite useful life reflects the manner in which the economic benefit is expected to be generated. The estimated useful life of amortisable intangibles are reviewed and where appropriate are adjusted, annually.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset on the date of disposal and are recognised in the standalone statement of profit and loss when the asset is derecognised. Amortisation on addition to intangible assets or on disposal of intangible assets is calculated pro-rata from the month of such addition or up to the month of such disposal as the case may be.

Intangible assets under development(''IAUD'') includes intangible assets under implementation stage and not ready for intend use as on balance sheet date.

e) Investment properties

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The Corporation depreciates investment property over 30 years from the date of original purchase.

Though the Corporation measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes.

Investment properties are derecognised either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in statement of profit and loss in the period of derecognition.

f) Depreciation and amortisation Depreciation:

The Corporation depreciates PPE over their estimated useful lives using the straight-line method. The estimated useful lives of PPE are as follows:

Class of asset	Number of years
Plant and equipment	10-15 years
Furniture and fixtures	10-16 years
Vehicles (scooters)	10 years
Vehicles (cars)	8 years
Computer hardware	3 years
Office equipment	5 years
Buildings	30 years
Leasehold lands	Lease period
Roads other than RCC	5 years
Development plantations 60 years
Mould and dies	5 years
Amortisation:
The Corporation amortise intangible asset over their estimated useful lives using the straightline method. The estimated useful lives of intangible asset is as follows:
Class of asset	Number of years
Computer software	3 years

g) Impairment of assets(i) Non-financial assets

amount (i.e., the higher of the fair value less cost to sell and the value in use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (''CGU'') to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognised in the standalone statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the standalone statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.

(ii) Financial assets

The Corporation assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 "Financial Instruments" requires expected credit losses to be measured through a loss allowance. The Corporation recognises lifetime expected losses for all trade receivables and contract assets that do not constitute a financing component. In determining the allowances for doubtful trade receivables and contract assets, the Corporation has used a practical expedient by computing the expected credit loss allowance for trade receivables and contract assets based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forwardlooking information. The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix. For all other financial assets, expected credit losses are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the lifetime credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

Investment in subsidiaries and associates

Investment in subsidiaries and associates are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiaries and associates, the difference between net disposal proceeds and the carrying amounts are recognised in the standalone statement of profit and loss.

h) Borrowing cost

Borrowing costs includes interest, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period in which they occur.

i) Inventories

Inventories are valued at lower of cost and estimated net realisable value, after providing for obsolescence, wherever appropriate. The cost is determined on weighted average basis, and includes all cost included in bringing inventories to their present location and condition. In case of work in progress, cost also includes cost of conversion. Net realisable value is the

estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

i) Stores and spares are valued at lower of cost or net realisable value. Cost is calculated on weighted average basis.

ii) Raw materials are valued at lower of cost or net realisable value. The cost includes purchase price as well as incidental expenses and is calculated on weighted average basis.

iii) Tea stock is valued at cost or net realisable value whichever is lower. Timber, coffee, pepper and cardamom in stock are designated as agricultural produce as per Ind AS 41 "Agriculture" and are measured at their fair value less cost to sell at the point of harvest. The fair valuation so arrived at becomes the cost of Inventory under Ind AS 2 "Inventories".

iv) Work-in-progress and manufactured finished goods of all divisions are valued at cost or net realisable value whichever is lower. Cost is arrived on the basis of absorption costing.

v) Traded finished goods of all businesses are valued at cost or net realisable value whichever is lower.

vi) Real Estate under development comprises of freehold / leasehold land and buildings at cost, converted from fixed assets into stock-in-trade and expenses related / attributable to the development of the said properties. The same is valued at lower of cost or net realisable value.

j) Investments

Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the standalone financial statements at lower of cost and fair value determined on an individual investment basis.

Non-current investments including investment in subsidiaries and associates are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of these investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the standalone statement of profit and loss.

k) Income taxes

Tax expense for the year comprises of current tax and deferred tax. Current tax is measured by the amount of tax expected to be paid to the taxation authorities on the taxable profits after considering tax allowances and exemptions and using applicable tax rates and laws. Deferred tax is recognised on temporary differences between the accounting base and the tax base for the year and quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.

or loss at the time of the transaction. Deferred tax asset is recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax liabilities are recognised for all taxable temporary differences.

Current tax and deferred tax assets and liabilities are offset where there is a legally enforceable right to set off the recognised amount and there is an intent to settle the asset and liability on a net basis.

l) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders of the Corporation by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders of the Corporation and the weighted average number of shares outstanding during the period, are adjusted for the effects of all dilutive potential equity shares.

m) Income recognition(i) Revenue recognition

Revenue is recognised to depict the transfer of promised products to customers in an amount that reflects the consideration to which the Corporation expects to be entitled in exchange for those products. The following specific recognition criteria must also be met before revenue is recognised:

Sale of products - Revenue from sale of product is recognised when control of the product is transferred to the buyer which generally coincides with acknowledgement of delivery at customer premises. The Corporation collects goods and services tax (''GST'') and other indirect taxes on behalf of the government and, therefore, these are not economic benefits flowing to the Corporation and are accordingly excluded from the revenue.

(ii) other operating income

It includes revenue arising from the duty drawbacks, export incentives or revenue arising from Corporation''s ancillary revenue-generating activities. Revenue from these activities are recorded only when Corporation is reasonably certain of such income.

(iii) other income

a. Dividend income is recognised when the Corporation''s right to receive the payment is established.

b. For all financial instruments measured at amortised cost, interest income is recognised using the effective interest method and on time proportion basis.

n) Employee benefits

Retirement benefits to employees comprise payments to provident funds, gratuity fund, compensated absence and superannuation fund.

i) Long-term employee benefits

a. Defined contribution plan - The Corporation has defined contribution plan for post employment benefits in the form of provident fund, employees'' state insurance,

pension and superannuation and labour welfare fund. Under the defined contribution plan, the Corporation has no further obligation beyond making the contributions. Such contributions are charged to the standalone statement of profit and loss as incurred.

b. Defined benefit plan - The Corporation has defined benefit plan for post employment benefits in the form of gratuity for its employees in India. Liability for defined benefit plan is provided on the basis of actuarial valuations, as at the balance sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method. Actuarial gains or losses are recognised in Other Comprehensive Income (''OCI''). Further, the profit or loss does not include an expected return on plan assets. Instead net interest recognised in standalone statement of profit and loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognised as part of remeasurement of net defined benefit liability or asset through OCI. Remeasurement comprising of actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset) are not reclassified to standalone statement of profit and loss in subsequent periods.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in the standalone statement of profit and loss. The Corporation recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

c. Other long-term employee benefits - The employees of the Corporation are also entitled to other long-term employee benefits in the form of compensated absences as per the policy of the Corporation. Accumulated leave, which is expected to be utilised within the next twelve months, is treated as short-term employee benefit. The Corporation measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. Actuarial gains and loss are recognised in the standalone statement of profit and loss during the period in which they arise.

ii) Short term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised in the year during which the employee rendered the services. These benefits include performance incentives. These benefits include compensated absences such as paid annual leaves and sickness leaves.

iii) post-employment benefits

Contributions to defined contribution schemes such as provident fund and superannuation fund are recognised as expenses in the period in which the employee renders the related service. In respect of certain employees, provident fund contributions are made to a Trust administered by the Corporation. The interest rate payable to the members of the trust shall not be lower than the statutory rate of interest declared by the Central Government under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Corporation. In respect of contributions made to Government administered provident fund, the Corporation has no further obligations beyond its monthly contributions.

Superannuation fund - The eligible employees of the Corporation are entitled to receive post employment benefits in respect of superannuation fund in which the Corporation

makes annual contribution at a specified percentage of the employee''s eligible salary. The contributions are made to the ICICI Prudential Life Insurance Corporation Limited. Superannuation is classified as defined contribution plan as the Corporation has no further obligations beyond making the contribution. The Corporation''s contribution to defined contribution plan is charged to the standalone statement of profit and loss as incurred.

o) Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Corporation has a present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. A disclosure for a contingent liability is made where there is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from the past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation. Where the Corporation expects a provision to be reimbursed, the reimbursement is recognised as a separate asset, only when such reimbursement is virtually certain. Contingent asset is not recognised in the standalone financial statements. However, it is recognised only when an inflow of economic benefits is probable.

p) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

(i) Corporation as a lessee

The Corporation''s lease asset class consists of leases for buildings and vehicles. The Corporation assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Corporation assesses whether: (i) the contract involves the use of an identified asset (ii) the Corporation has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Corporation has the right to direct the use of the asset.

At the date of commencement of the lease, the Corporation recognises a right of use asset (''ROU'') and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Corporation recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The ROU assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any.

ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (''CGU'') to which the asset belongs.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Corporation changes its assessment on whether it will exercise an extension or a termination option.

Lease liabilities and ROU assets have been separately presented in the standalone balance sheet and lease payments have been classified as financing cash flows.

(ii) Corporation as a lessor

Leases for which the Corporation is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. When the Corporation is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the ROU asset arising from the head lease. For operating leases, rental income is recognised on a straight-line basis over the term of the relevant lease.

q) Financial instruments

(i) I nitial recognition and measurement - The Corporation recognises financial assets and liabilities when it becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are recognised at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and liabilities that are not at fair value through profit or loss are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are recognised on the trade date.

(ii) subsequent measurementNon derivative financial instruments

(a) Financial assets carried at amortised cost - A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(b) Financial assets at fair value through other comprehensive income (''FvoCI'') - A

financial asset is subsequently measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely

Mar 31, 2022

1 Significant accounting policies, key accounting estimates and judgments Corporate information

The Bombay Burmah Trading Corporation, Limited (the ''Corporation'') or ''BBTCL'' is a public Corporation domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India, BSE Limited (''BSE'') and National Stock Exchange of India Limited (''NSE''). The Corporation''s registered office is located at 9, Wallace Street, Fort, Mumbai - 400001. The Corporation was incorporated on 04 September 1863 vide certificate of incorporation number L99999MH1863PLC000002 issued by the Registrar of Companies, Mumbai, Maharashtra.The Corporation is a multi-product and multi-divisional organisation with diverse business interests - plantations (tea and coffee), auto electric components, healthcare and real estate.

1 (A) General information and statement of compliance

The revision to standalone financial statements is permitted by Board of Directors after obtaining necessary approvals or at the instance of regulatory authorities as per the provisions of the Act.

All amounts included in the standalone financial statements are reported in Indian Rupees (T) in Lakhs unless otherwise stated and "0" denotes amounts less than one thousands rupees.

These standalone financial statements are separate financial statements of the Corporation under Ind AS 27 "Separate Financial Statements" (''Ind AS 27'').

1 (B) Basis of preparation and presentationBasis of preparation

- Certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments);

- Biological assets - measured at fair value less costs to sell; and

- Defined benefit plans and other long term benefit plans 1 (C) Key estimates and judgements

i) Property, plant and equipment:

ii) Defined benefit plans:

iii) Deferred tax:

iv) Provisions:

v) Evaluation of indicators for impairment of assets:

vi) Biological assets

Management uses inputs relating to production and market prices of tea and coffee in determining the fair value of biological assets.

vii) Income tax

Significant judgments are involved in determining the provision for income tax, including the amount expected to be paid or recovered in connection with uncertain tax positions.

viii) Expected credit loss on financial assets:

based on the Corporation''s past history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

ix) Leases:

x) Contingent liabilities:

xi) Fair value measurement:

1 (D) Details of significant investments in subsidiary and associate companies in accordance with Ind AS 27

Name of the subsidiary	Principal place of business and country of incorporation	% ownership interest held by the Corporation as at 31 March 2022
Subsidiary companies
Afco Industrial & Chemicals Limited	India	100.00%
DPI Products & Services Limited	India	100.00%
Sea Wind Investment and Trading	India	100.00%
Corporation Limited
Leila Lands Senderian Berhad	Malaysia	100.00%
Subham Viniyog Private Limited	India	100.00%
Naira Holdings Limited	British Virgin Islands	100.00%
Island Horti-Tech Holdings Pte. Limited	Singapore	100.00%
Leila Lands Limited	Mauritius	100.00%
Restpoint Investments Limited	British Virgin Islands	100.00%
Baymanco Investments Limited	Mauritius	100.00%

Name of the subsidiary	Principal place of business and country of incorporation	% ownership interest held by the Corporation as at 31 March 2022
Island Landscape & Nursery Pte. Limited	Singapore	100.00%
Innovative Organics Inc.	United States of America	58.80%
ABI Holding Limited	United Kingdom	100.00%
Britannia Brands Limited	United Kingdom	100.00%
Associated Biscuits International Limited	United Kingdom	100.00%
Dowbiggin Enterprises Pte. Limited	Singapore	100.00%
Nacupa Enterprises Pte. Limited	Singapore	100.00%
Spargo Enterprises Pte. Limited	Singapore	100.00%
Valletort Enterprises Pte. Limited	Singapore	100.00%
Bannatyne Enterprises Pte. Limited	Singapore	100.00%
Britannia Industries Limited	India	50.54%
Granum Inc.	United States of America	58.80%
Boribunder Finance & Investments Private Limited	India	50.54%
Flora Investments Corporation Private Limited	India	50.54%
Gilt Edge Finance & Investments Private Limited	India	50.54%
Ganges Vally Foods Private Limited	India	50.54%
International Bakery Products Limited	India	50.54%
J. B. Mangharam Foods Private Limited	India	50.54%
Manna Foods Private Limited	India	50.54%
Sunrise Biscuit Company Private Limited	India	50.54%
Britannia and Associates (Mauritius) Private Limited	Mauritius	50.54%
Britannia and Associates (Dubai) Private Company Limited	United Arab Emirates	50.54%
Al Sallan Food Industries Company SAOG	Oman	50.54%
Strategic Food International Company LLC	United Arab Emirates	50.54%
Strategic Brands Holding Company Limited	United Arab Emirates	50.54%
Britannia Dairy Private Limited	India	50.54%
Britannia Dairy Holdings Private Limited	Mauritius	50.54%
Britannia Employees General Welfare Association Private Limited	India	50.54%

Name of the subsidiary	Principal place of business and country of incorporation	% ownership interest held by the Corporation as at 31 March 2022
Britannia Employees Medical Welfare Association Private Limited	India	50.54%
Britannia Employees Educational Welfare Association Private Limited	India	50.54%
Britchip Foods Limited	India	50.54%
Britannia Bangladesh Private Limited	Bangladesh	50.54%
Britannia Nepal Private Limited	Nepal	50.54%
Britannia Egypt LLC	Egypt	50.54%
Snacko Bisc Private Limited	India	50.54%
Vasana Agrex and Herbs Private Limited	India	50.54%
Strategic Foods Uganda Limited	Uganda	50.54%
Daily Bread Gourmet Foods (India) Private Limited	India	50.54%
Associate companies
Lotus Viniyog Private Limited	India	50.00%
Lima Investment and Trading Company Private Limited	India	50.00%
Roshnara Investment and Trading Company Private Limited	India	50.00%
Cincinnati Investment and Trading Company Private Limited	India	50.00%
Shadhak Investments and Trading Private Limited	India	50.00%
MSIL Investments Private Limited	India	50.00%
Medical Microtechnology Limited	India	50.00%
Harvard Plantations Limited	India	50.00%
Placid Plantations Limited	India	50.00%
The Bombay Dyeing & Manufacturing Company Limited	India	44.36%
Go Airlines (India) Limited	India	32.61%
Nalanda Biscuit Corporation Limited	India	50.00%
Sunandaram Foods Private Limited	India	50.00%

1 (E) Summary of significant accounting policiesi) a) Functional and presentation currency

b) Foreign currency transactions and translations

The assets and liabilities of foreign operations including goodwill and fair value adjustments arising on acquisition, are translated into INR, the functional currency of the Corporation, at the exchange rates on the reporting date. The income and expenses of foreign operations are translated into INR at the exchange rates at the dates of the transactions or an average rate if the average approximates the actual rate at the date of transaction.

c) Current versus non-current classification

(i) An asset is considered as current when it is:

a. Expected to be realised or intended to be sold or consumed in the normal operating cycle, or

b. Held primarily for the purpose of trading, or

c. Expected to be realised within twelve months after the reporting period, or

d. Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(ii) All other assets are classified as non-current.

(iii) Liability is considered as current when it is:

a. Expected to be settled in the normal operating cycle, or

b. Held primarily for the purpose of trading, or

c. Due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

(iv) All other liabilities are classified as non-current.

(v) Deferred tax assets and liabilities (net) are classified as non-current assets and liabilities.

ii) a) Property, plant and equipment (''PPE'')

Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognised in standalone statement of profit and loss.

An item of PPE initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use.

Items such as spare parts are recognised as PPE when they meet the definition of PPE. Otherwise, such items are classified as inventory.

Depreciation on addition to PPE or on disposal of PPE is calculated pro-rata from the month of such addition or up to the month of such disposal as the case may be.

b) Development plantations

Cost incurred for acquiring new plantations and their upkeep are capitalised until they attain maturity to yield biological produce. Such cost is included under capital work-in-progress and thereafter the same is capitalised as "Development plantations" and depreciated over their estimated useful life.

c) Capital work-in-progress and intangible assets under development

Costs incurred during construction or acquisition of qualifying PPE is included under capial work-in-progress and the same gets capitalised in the respective block of PPE on the completion of their construction. No depreciation is charged till the asset is ready to use.

Advances made toward the acquisition or construction of any qualifying PPE outstanding at each reporting date are disclosed as capital advances under "Other non-current assets".

d) Intangible assets

initial recognition, intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The amortisation of an intangible asset with a finite useful life reflects the manner in which the economic benefit is expected to be generated. The estimated useful life of amortisable intangibles are reviewed and where appropriate are adjusted, annually.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset on the date of disposal and are recognised in the standalone statement of profit and loss when the asset is derecognised. Amortisation on addition to intangible assets or on disposal of intangible assets is calculated prorata from the month of such addition or up to the month of such disposal as the case may be.

e) Investment properties

The Corporation depreciates investment property over 30 years from the date of original purchase.

Though the Corporation measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes.

f) Depreciation and amortisation Depreciation:

The Corporation depreciates PPE over their estimated useful lives using the straight-line method. The estimated useful lives of PPE are as follows:

Class of asset	Number of years
Plant and equipment	10-15 years
Furniture and fixtures	10-16 years
Vehicles (scooters)	10 years
Vehicles (cars)	8 years
Computer hardware	3 years
Office equipment	5 years
Buildings	30 years
Leasehold lands	Lease period
Roads other than RCC	5 years
Development plantations	60 years
Mould and dies	5 years

Amortisation:

The Corporation amortise intangible asset over their estimated useful lives using the straightline method. The estimated useful lives of intangible asset is as follows:

Class of asset Number of years

Computer software 3 years

g) Impairment of assets(i) Non-financial assets

Intangible assets, right of use (''ROU'') assets, investment property and PPE are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value in use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (''CGU'') to which the asset belongs.

(ii) Financial assets

In accordance with Ind AS 109 "Financial Instruments", the Corporation applies the expected credit loss (''ECL'') model for measurement and recognition of impairment loss on financial assets and credit risk exposures.

ECL is the difference between all contractual cash flows that are due to the Corporation in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the effective interest rate (''EIR'') of the instrument. Lifetime ECL are the expected credit loss resulting from all possible default events over the expected life of a financial instrument. The twelve-month ECL is a portion of the lifetime ECL which results from default events that are possible within twelve months after the reporting date.

The Corporation follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Corporation determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, twelve-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in a subsequent period, the credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on twelve-month ECL.

ECL impairment loss allowance or reversal recognised during the period is recognised as expense or income in the standalone statement of profit and loss.

h) Borrowing cost

i) Inventories

Inventories are valued at lower of cost and estimated net realisable value, after providing for obsolescene, wherever appropriate. The cost is determined on weighted average basis, and includes all cost included in bringing inventories to their present location and condition. In case of work in progress, cost also includes cost of conversion. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

i) Stores and spares are valued at lower of cost or net realisable value. Cost is calculated on weighted average basis.

ii) Raw materials are valued at lower of cost or net realisable value. The cost includes purchase price as well as incidental expenses and is calculated on weighted average basis.

iv) Work-in-progress and manufactured finished goods of all divisions are valued at cost or net realisable value whichever is lower. Cost is arrived on the basis of absorption costing.

v) Traded finished goods of all businesses are valued at cost or net realisable value whichever is lower.

j) Investments

Current investments are carried in the standalone financial statements at lower of cost and fair value determined on an individual investment basis.

k) Income taxes

Deferred tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in standalone financial statements, except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction. Deferred tax asset is recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax liabilities are recognised for all taxable temporary differences.

l) Earnings per share

m) Income recognition(i) Revenue recognition

(ii) Other operating income

It includes revenue arising from the duty drawbacks, export incentives or revenue arising

from Company''s ancillary revenue-generating activities. Revenue from these activities are

recorded only when Corporation is reasonably certain of such income.

(iii) Other income

a. Dividend income is recognised when the Corporation''s right to receive the payment is established.

b. For all financial instruments measured at amortised cost, interest income is recognised using the effective interest method and on time proportion basis.

n) Employee benefits

Retirement benefits to employees comprise payments to provident funds, gratuity fund, compensated absence and superannuation fund.

i) Long-term employee benefits

a. Defined contribution plan - The Corporation has defined contribution plan for post employment benefits in the form of provident fund, employees'' state insurance, pension and superannuation and labour welfare fund. Under the defined contribution plan, the Corporation has no further obligation beyond making the contributions. Such contributions are charged to the standalone statement of profit and loss as incurred.

c. Other long-term employee benefits - The employees of the Corporation are also entitled to other long-term employee benefits in the form of compensated absences as per the policy of the Corporation. Accumulated leave, which is expected to be utilised within the next twelve months, is treated as short-term employee benefit. The Corporation measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Corporation treats accumulated leave expected to be carried forward beyond twelve months, as longterm employee benefit for measurement purposes. Such long-

term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year end. Actuarial gains and loss are recognised in the standalone statement of profit and loss during the period in which they arise.

ii) Short term employee benefits

iii) Post-employment benefits

Superannuation fund - The eligible employees of the Corporation are entittled to receive post employment benefits in respect of superannuation fund in which the Corporation makes annual contribution at a specified percentage of the employee''s eligible salary. The contributions are made to the ICICI Prudential Life Insurance Corporation Limited. Superannuation is classified as defined contribution plan as the Corporation has no further obligations beyond making the contribution. The Corporation''s contribution to defined contribution plan is charged to the standalone statement of profit and loss as incurred.

o) Provisions, contingent liabilities and contingent assets

p) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

(i) Corporation as a lessee

Lease liabilities and ROU assets have been separately presented in the standalone balance sheet and lease payments have been classified as financing cash flows.

(ii) Corporation as a lessor

q) Financial instruments

(ii) Subsequent measurementNon derivative financial instruments

(b) Financial assets at fair value through other comprehensive income (''FVOCI'') - A

(c) Financial assets at fair value through profit or loss (''FVTPL'') - A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(d) Financial liabilities - Financial liabilities are subsequently carried at amortised cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(iii) De-recognition of financial instruments

The Corporation derecognises a financial asset when the contractual right to receive the cash flows from the financial asset expire or it transfers the financial asset. A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

(iv) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.

r) Biological assets

The Corporation has biological assets in the form of tea leaves and coffee fruits. Biological assets are measured at fair value less costs to sell, with any change therein recognised in the standalone statement of profit and loss under ''other income'' or ''other expenses'', as the case may be.

s) Exceptional items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to assist users in understanding the financial performance achieved and in making projections of future financial performance, the nature and amount of such material items are disclosed separately as exceptional items.

t) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, balance with banks in current account and demand deposits, together with other short-term, highly liquid investments (original maturity less than three months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

u) Equity shares

Equity shares are classified as equit

Mar 31, 2018

a property, plant and equipment (ppE)

Items of property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials, direct labour and any other costs directly attributable to bringing the item to its intended working condition and estimated costs of dismantling, removing and restoring the site on which it is located, wherever applicable.

Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognised in statement of profit and loss.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in statement of profit and loss.

Expenditure in respect of new crops including cost of development is capitalised until the year of maturity of the plantation.

Any gain or loss arising from the disposal of property, plant and equipment is recognised in the statement of profit and loss.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

b Capital work-in-progress

Expenditure incurred on acquiring plants and their upkeep until they attain maturity to yield biological produce is included under capital work-in-progress and thereafter the same is capitalised to âdevelopment plantationsâ.

Expenditure incurred during construction or acquisition of qualifying PPE is included under capial work-in-progress and the same gets capitalised in the respective block of PPE on the completion of their construction.

Advances made toward the acquisition or construction of any qualifying PPE outstanding at each reporting date are disclosed as capital advances under âother non-current assetsâ.

c Intangible assets

Intangible assets include computer software which are acquired by the Company and are initially measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.

d Depreciation and amortisation

i. depreciation:

Depreciation in respect of all tangible assets is provided on straight line method over the useful lives of assets based on the evaluation. Depreciation on additions (disposals) is provided on pro-rata basis i.e. from (upto) the date on which the asset is ready for use (disposed off). The useful life of fixed assets is as follows:

Plant and machinery* - 10-15 years

Furniture and fixtures* - 10-16 years

Motor vehicles (scooters) - 10 years

Motor vehicles (Cars) - 8 years

Computer hardware - 3 years

Office equipment - 5 years

Buildings - 30 years

Leasehold lands - Lease period

Roads other than RCC - 5 years

Development plantations - 60 years

Mould and dies* - 5 years

*The Company believes the useful lives as given above best represent the useful life of these assets based on internal assessment where necessary, which is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act, 2013. Assets costing less than Rs.5,000/- are fully depreciated in the year of purchase.

ii. Amortisation:

Amortisation in respect of all the intangible assets is provided on straight line method over the useful lives of assets. The useful life of such intangible assets is as follows:

Computer software 3 years

e Impairment of property, plant and equipments

The carrying values of assets at each balance sheet date are reviewed for impairment if any indication of impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount, an impairment loss is recognized for such excess amount. The impairment loss is recognized as an expense in the statement of profit and loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor.

When there is indication that an impairment loss recognized for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the statement of profit and loss, to the extent the amount was previously charged to the statement of profit and loss. In case of revalued assets such reversal is not recognized.

f Borrowing cost

Borrowing costs that are attributable to acquisition or construction of qualifying assets are capitalized as a part of cost of such assets till the time the asset is ready for its intended use. A qualifying assets is the one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recorded as an expense in the year in which they are incurred.

g Inventories

i. Stores and spare parts are valued at lower of cost or net realisable value. Cost is calculated on weighted average basis.

ii. Raw materials are valued at lower of cost or net realisable value. The cost includes purchase price as well as incidental expenses and is calculated on weighted average basis.

iii. Tea stock is valued at cost or net realizable value whichever is lower and inclusive of cess on excise. Timber, coffee, pepper and cardamom in stock are valued at realized contracted rates or realizable value.

iv. Work-in-progress is valued at cost or net realisable value whichever is lower. Cost is arrived on the basis of absorption costing.

v. Manufactured finished goods of all divisions are valued at cost or net realisable value whichever is lower. Cost is determined on the basis of absorption costing including excise duty paid / provided on packed finished goods.

vi. Traded finished goods of all businesses are valued at cost or net realisable value whichever is lower.

vii. Real Estate under development comprises of freehold / leasehold land and buildings at cost, converted from fixed assets into stock-in-trade and expenses related / attributable to the development of the said properties. The same is valued at lower of cost or net realizable value.

h Investment properties

The Company depreciates investment property over 30 years from the date of original purchase.

Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes.

Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in statement of profit and loss in the period of derecognition.

i Income taxes

Tax expense comprises of current tax and deferred tax.

Current tax comprises of the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax relating to items recognised outside statement of profit and loss is recognised either in Other Comprehensive Income or in equity. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation.

j earnings per share

The basic and diluted earnings per share (EPS) is computed by dividing net profit after tax for the year by weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date.

In computing diluted earnings per share, no adjustments are done for the effects of potential dilutive equity shares where the results would be anti-dilutive.

k Revenue recognition

Revenue is measured at fair value of consideration received or receivable.

i. sale of goods

Sale of goods is recognized as revenue when the significant risks and rewards of ownership of the goods have passed to the buyer. Revenues are recognized when collectability of the resulting receivable is reasonably assured. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Read with note 1(F)a.

ii. other income

a. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the effective interest rate method.

b. Revenue in respect of insurance / other claims, interest etc., is recognised only when it is reasonably certain that the ultimate collection will be made.

c. Dividend income is recognised when the right to receive payment is established and it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the revenue can be measured reliably.

l Foreign currency transactions

i. Initial recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.

ii. subsequent measurement

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency differences are generally recognised in statement of profit and loss. Non-monetary items that are measured based on historical cost in a foreign currency are not translated.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognised in the statement of profit and loss in the period in which they arise. When a gain or loss on a non-monetary item is recognised in Other Comprehensive Income, any exchange component of that gain or loss is recognised in Other Comprehensive Income. Conversely, when a gain or loss on a non-monetary item is recognised in statement of profit and loss, any exchange component of that gain or loss is recognised in statement of profit and loss.

m Employee benefits

Retirement benefits to employees comprise payments to government provident funds, gratuity fund, leave encashment and superannuation fund.

i. Short term employee benefits

All employee benefits payable wholly within 12 months of rendering the service are classified as short term employee benefits. These benefits include compensated absences such as paid annual leave and sickness leave. The Company recognises the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expenses) after deducting any amount already paid.

ii. Post-employment benefits

Contributions to defined contribution schemes such as provident fund and superannuation fund are recognised as expenses in the period in which the employee renders the related service. In respect of certain employees, provident fund contributions are made to a trust administered by the Company. The interest rate payable to the members of the trust shall not be lower than the statutory rate of interest declared by the Central Government under the Employeesâ Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Company. In respect of contributions made to government administered Provident Fund, the Company has no further obligations beyond its monthly contributions.

Superannuation fund - The eligible employees of the Company are entittled to receive post employment benefits in respect of superannuation fund in which the Company makes annual contribution at a specified percentage of the employeeâs eligible salary. The contributions are made to the ICICI Prudential Life Insurance Company Limited. Superannuation is classified as defined contribution plan as the Company has no further obligations beyond making the contribution. The Companyâs contribution to defined contribution plan is charged to statement of profit and loss as incurred.

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation performed by an independent actuary based on projected unit credit method made at the end of each financial year.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in statement of profit and loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in statement of profit and loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

iii. Other long term employee benefits

The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leaves subject to certain limits for future encashment/ availment. The Company makes provisions for compensated absences based on an independent actuarial valuation carried out at the end of the year. Long term compensated absences are provided for based on actuarial valuation.

The actuarial valuation is done as per projected unit credit method Actuarial gains and losses are recognised in the statement of profit and loss.

n Provisions and contingencies

i. A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the notes to the financial statements.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

ii. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying benefits is remote, no provision or disclosure is made.

o Leases

At the inception of a lease, the lease arrangement is classified as either a finance lease or an operating lease, based on the substance of the lease arrangement.

i. Assets taken on finance lease :

A finance lease is recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the asset and the present value of the minimum lease payments. Initial direct costs, if any, are also capitalised and, subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

ii. Assets taken on operating lease :

Leases other than finance leases are operating leases, and the leased assets are not recognized on the Companyâs balance sheet. Payments made under operating leases are recognized in the statement of profit and loss on a straight-line basis over the term of the lease unless the payments are expected to increase in line with the expected general inflation to compensate for the lessorâs expected inflationary cost increases.

In respect of assets given on operating lease, lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

p Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments also include derivative contracts such as foreign currency foreign exchange forward contracts.

i. Financial assets Classification

On initial recognition, a financial asset is classified as, measured at:

- Amortised cost

- Fair value through Other Comprehensive Income (FVTOCI)

- Fair value through Profit and Loss (FVTPL)

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through statement of profit and loss, transaction costs that are attributable to the acquisition of the financial asset.

Debt instruments at amortised cost

A âdebt instrumentâ is measured at the amortised cost if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.

Equity investments

All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVTOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment. However, the Company may transfer the cumulative gains and losses within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of the debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the fair value initially recognised less cumulative amortisation.

Impairment of financial assets

Financial assets of the Company comprise of trade receivable and other receivables consisting of loans, deposits, and bank balance. Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. An impairment loss for trade and other receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Impairment losses if any, are recognised in statement of profit and loss for the period.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

ii. Financial liabilities Classification

Financial liabilities are classified as, measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition.

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable and incremental transaction cost. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. The Companyâs financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative Financial Instruments.

derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

iii. Derivative financial instruments

The Company uses derivative Financial Instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative Financial Instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains and losses arising from changes in the fair value of derivatives are taken directly to statement of profit and loss.

q Biological assets

The Company has biological assets in the form of tea leaves and coffee fruits. Biological assets are measured at fair value less costs to sell, with any change therein recognised in the statement of profit and loss under âother incomeâ.

r dividend distribution to equity holders of the Company

The Company recognises a liability to make cash or non-cash distributions to equity holders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

s Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement comprises of cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less and short term highly liquid investments. Bank overdraft which are repayable on demand form an integral part of the Companyâs cash management, hence bank overdrafts are included as a component of cash and cash equivalents.

t Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.

u Events after reporting date

Where events occurring after the balance sheet date provides evidence of condition that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

1 (F) Recent accounting pronouncements - Standards issued but not effective on balance sheet date:

a) Ind AS 115, Revenue from contracts with customers

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115 âRevenue from Contracts with Customersâ (New Revenue Standard), which replaces Ind AS 11 âConstruction Contractsâ and Ind AS 18 âRevenueâ. The core principle of the New Revenue Standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Some of the key changes introduced by the New Revenue Standard include additional guidance for multiple-element arrangements, measurement approaches for variable consideration, adjustments for time value of money etc. Significant additional disclosures in relation to revenue are also prescribed. The New Revenue Standard also provides two broad alternative transition options - retrospective method and cumulative effect method - with certain practical expedients available under the retrospective method. Except for the disclosure requirements, the new standard will not materially impact the Companyâs financial statements. The amendment will come into force from 1^st April, 2018.

b) Ind AS 21, The effect of changes in foreign exchange rates

The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the earlier of the date of initial recognition of the nonmonetary prepayment asset or deferred income liability and the date that the related item is recognised in the financial statements. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. The Company is evaluating the impact of this amendment on its financial statements.

c) Ind AS 40, Investment property

The amendment explains that the transfer to, or from, investment property is made when there is an actual change of use, that is, the asset meets or ceases to meet the definition of investmemt property and there is evidence of change in use. A change in managementâs intentions for the use of a property does not provide evidence of a change in use. The Company has evaluated the impact of this amendment and concluded that there shall be no impact on its financial statements.

Income. During the previous year, the Company purchased additional 49,218,338 equity shares of BDMC on 20 March 2017, out of which 47,307,000 was sold to a wholly owned step down subsidiary of the Company before 31^st March, 2017. With the acquisition of additional equity shares of BDMC by the Company on 20 March 2017, BDMC has become an associate of the Company effective that date. Accordingly the Company has recorded the equity instruments in BDMC at fair value through Other Comprehensive Income upto 20 March 2017. The Company has availed the exemption of recording the investment in subsidiaries and associates at cost. Accordingly, the fair value of investment in BDMC as at 20^th March 2017 has been considered as deemed cost of investment.

Mar 31, 2017

1 Significant accounting policies, key accounting estimates and judgments

Corporate information

The Bombay Burmah Trading Corporation, Limited (''BBTCL'') (''the Company'') having its registered office at 9, Wallace Street, Fort, Mumbai 400001 was incorporated on September 4 ,1863 vide certificate of incorporation No L99999MH1863PLC000002 issued by the Registrar of Companies, Mumbai, Maharashtra.

The Company is a multi-product and multi-divisional organization with diverse business interests viz. Plantations (Tea and Coffee), Auto Electric Components, Healthcare, Real Estate and Weighing Products.

1(A)Statement of Compliance

These financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendments) Rules, 2016, the relevant provisions of the Companies Act, 2013 ("the Act") and the guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable.

The financial statements for the year ended 31 March, 2017 are the Company''s first Ind AS financial statements. The date of transition to Ind AS is 1 April, 2015. Accordingly, the Company has prepared an opening Ind AS Balance Sheet as at 1 April, 2015 and comparative figures for the year ended 31 March, 2016 are also in compliance with Ind AS. An explanation of how the transition to Ind AS has effected the previously reported financial position, financial performance and cash flows of the Company is provided in Note 34.

The financial statements for the year ended 31 March, 2017 were approved by the Board of directors on May 30, 2017. The management and authorities have the power to amend the financial statements in accordance with Section 130 and 131 of the Act.

1(B) Basis of preparation and presentation

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:

- Biological assets- measured at fair value less costs to sell

- Derivative financial instruments- measured at fair value

- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

- Employees defined benefit plans at fair value of plan assets less present value of defined benefit obligation

Current/non-current classification:

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification,

a. An asset shall be classified as current when it satisfies any of the following criteria:

i) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;

ii) it is held primarily for the purpose of being traded;

iii) it is expected to be realized within twelve months after the reporting date; or

iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

Current assets include the current portion of non-current financial assets. All assets other than current assets shall be classified as non-current.

b. A liability shall be classified as current when it satisfies any of the following criteria:

i) it is expected to be settled in the Company''s normal operating cycle;

ii) it is held primarily for the purpose of being traded;

iii) it is due to be settled within twelve months after the reporting date; or

iv) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Functional and presentation currency

These standalone financial statements are presented in Indian rupees, which is the Company''s functional currency. All amounts have been rounded to the nearest Lakh, unless otherwise indicated. Amounts below 1 Lakh have been indicated as "0" (Zero). Figures/total have been rounded off to nearest integer / Lakhs as applicable.

1(C)Key estimates and judgments

The preparation of financial statements in accordance with Ind AS requires use of estimates and underlying assumptions for some items, which might have an effect on their recognition and measurement in the (standalone) Balance Sheet and (standalone) Statement of Profit and Loss. The actual amounts realized may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognized prospectively.

i. Property, plant and equipment :

Determination of the estimated useful lives of tangible assets and the assessment as to which components of the cost may be capitalized. Useful lives of tangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support. Assumptions also need to be made, when the Company assesses, whether an asset may be capitalized and which components of the cost of the asset may be capitalized.

ii. Recognition and measurement of defined benefit obligations :

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and vested future benefits and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.

iii. Recognition of deferred tax assets :

A deferred tax asset is recognized for all the deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

iv. Recognition and measurement of other provisions :

The recognition and measurement of other provisions are based on the assessment ofthe probability of an outflow of resources, and on past experience and circumstances known at the balance sheet date.

The actual outflow of resources at a future date may therefore vary from the figure included in other provisions.

v. Discounting of long-term financial instruments :

All financial instruments are required to be measured at fair value on initial recognition. In case of financial instruments which are required to subsequently measured at amortized cost, interest is accrued using the effective interest method.

vi. Fair value of financial instruments :

Derivatives are carried at fair value. Derivatives includes Foreign Currency Forward Contracts, fair value of which, is determined using the fair value reports provided by respective merchant bankers.

vii. Investment in The Bombay Dyeing & Manufacturing Company Limited (''BDMC'')

The Company along with its Subsidiaries holds 39.54% of the paid up Equity Share Capital of BDMC, a Company listed on the Bombay Stock Exchange. Based on legal opinion and further based on internal evaluation made by the Company, there is no de facto control of the Company over BDMC.

viii. Biological assets

Management uses inputs relating to production and market prices of tea and coffee in determining the fair value of Biological Assets.

1(D)Measurement of fair values

The Company''s accounting policies and disclosures require the measurement of fair values for financial instruments. The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of a financial asset or a financial liability, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. (Refer to note 39 for information on detailed disclosures pertaining to measurement of fair values.

1(E) Statement of significant accounting policies

a Property, plant and equipment

Items of Property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognized in Statement of Profit and Loss.

Expenditure in respect of new crops including cost of development is capitalized until the year of maturity of the Plantation.

Fixed assets held by non-integral foreign branches are stated at cost by converting at the closing rate of exchange at the Balance Sheet date.

b Intangible assets

c Depreciation and amortization

Depreciation:

Depreciation in respect of all tangible assets is provided on straight line method over the useful lives of assets based on the evaluation. Depreciation on additions (disposals) is provided on pro-rata basis i.e. from (up to) the date on which the asset is ready for use (disposed off). The useful life of Axed assets is as follows:

*The Company believes the useful lives as given above best represent the useful life of these assets based on internal assessment where necessary, which is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act, 2013. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase.

Amortization:

Amortization in respect of all the intangible assets is provided on straight line method over the useful lives of assets based on the evaluation and for the assets acquired prior to 1^st April, 2014, the carrying amount as on 1^st April, 2014 is amortized over the remaining useful life based on an evaluation. The useful life of such intangible assets is as follows:

Computer software 3 years

d Impairment of Property, plant and equipments

The carrying values of assets at each balance sheet date are reviewed for impairment if any indication of impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognized for such excess amount. The impairment loss is recognized as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

When there is indication that an impairment loss recognized for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets such reversal is not recognized.

e Borrowing cost

f Inventories

i) Stores and spare parts are valued at lower of cost or net realizable value. Cost is calculated on weighted average basis.

ii) Raw materials are valued at lower of cost or net realizable value. The cost includes purchase price as well as incidental expenses and is calculated on weighted average basis.

iii) Tea stock is valued at cost or net realizable value whichever is lower and inclusive of cess on excise. Timber, coffee, pepper and cardamom in stock are valued at realized contracted rates or realizable value.

iv) Work-in-progress is valued at cost or net realizable value whichever is lower. Cost is arrived on the basis of absorption costing.

v) Manufactured finished goods of all divisions are valued at cost or net realizable value whichever is lower. Cost is determined on the basis of absorption costing including excise duty paid / provided on packed finished goods.

vi) Traded finished goods of all businesses are valued at cost or net realizable value whichever is lower.

vii) Real Estate underdevelopment comprises of freehold/leasehold land and buildings at cost, converted from fixed assets into Stock-in Trade and expenses related / attributable to the development of the said properties. The same is valued at lower of cost or net realizable value.

g Investment Properties

The Company depreciates investment property over 30 years from the date of original purchase.

Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes.

Investment properties are derecognized either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in Statement of Profit and Loss in the period of derecognition.

h Income taxes

Tax expense comprises of current tax and deferred tax.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax relating to items recognized outside Statement of Profit and Loss is recognized either in other comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

i Earnings per share

The basic and diluted earnings per share (EPS) is computed by dividing Net Profit after tax for the year by weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date.

j Revenue Recognition

Revenue is measured at fair value of consideration received or receivable,

i. Sale of goods

ii. Other income

a. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the effective interest rate method.

b. Revenue in respect of insurance / other claims, interest etc., is recognized only when it is reasonably certain that the ultimate collection will be made.

c. Dividend income is recognized when the right to receive payment is established and it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the revenue can be measured reliably.

k Foreign currency transactions

i. Initial recognition

ii. Subsequent measurement

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency differences are generally recognized in Statement of Profit and Loss. Non-monetary items that are measured based on historical cost in a foreign currency are not translated.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognized in the Statement of Profit and Loss in the period in which they arise. When a gain or loss on a non-monetary item is recognized in Other Comprehensive Income, any exchange component of that gain or loss is recognized in Other Comprehensive Income. Conversely, when a gain or loss on a non-monetary item is recognized in Statement of Profit and Loss, any exchange component of that gain or loss is recognized in Statement of Profit and Loss.

I Retirement and other employee benefits

Retirement benefits to employees comprise payments to government provident funds, gratuity fund, leave encashment and superannuation fund.

i) Short Term Employee Benefits

All employee benefits payable wholly within 12 months of rendering the service are classified as short term employee benefits. These benefits include compensated absences such as paid annual leave and sickness leave. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expenses) after deducting any amount already paid.

ii) Post-employment benefits

Contributions to defined contribution schemes such as Provident Fund and Superannuation Fund are recognized as expenses in the period in which the employee renders the related service. In respect of certain employees, Provident Fund contributions are made to a Trust administered by the Company. The interest rate payable to the members of the Trust shall not be lower than the statutory rate of interest declared by the Central Government under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made good by the Company. In respect of contributions made to government administered Provident Fund, the Company has no further obligations beyond its monthly contributions.

Superannuation Fund - The eligible employees of the Company are entitled to receive post employment benefits in respect of Superannuation Fund in which the Company makes annual contribution at a specified percentage of the employee''s eligible salary. The contributions are made to the ICICI Prudential Life Insurance Company Limited. Superannuation is classified as defined contribution plans the Company has no further obligations beyond making the contribution. The Company''s contribution to defined contribution plan is charged to Statement of Profit and Loss as incurred.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in OCI. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognized in Statement of Profit and Loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in Statement of Profit and Loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

iii) Other Long Term Employee Benefits

The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leaves subject to certain limits for future encashment/ availment. The Company makes provisions for compensated absences based on an independent actuarial valuation carried out at the end of the year. Long-term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method Actuarial gains and losses are recognized in the Statement of Profit and Loss.

m Provisions and contingencies

a. A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the notes to the financial statements.

b. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying benefits is remote, no provision or disclosure is made.

n Leases

At the inception of a lease, the lease arrangement is classified as either a finance lease or an operating lease, based on the substance of the lease arrangement.

a. Assets take non finance lease

A finance lease is recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the asset and the present value of the minimum lease payments. Initial direct costs, if any, are also capitalized and, subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

b. Assets taken on operating lease

Leases other than finance leases are operating leases, and the leased assets are not recognized on the Company''s balance sheet. Payments made under operating leases are recognized in the statement of profit and loss on a straight-line basis over the term of the lease unless the payments are expected to increase in line with the expected general inflation to compensate for the lessor''s expected inflationary cost increases.

In respect of assets given on operating lease, lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

o Financial Instruments

i. Financial assets Classification

On initial recognition, a financial asset is classified as, measured at:

- Amortized Cost

- Fair Value through Other Comprehensive Income (FVTOCI)

- Fair Value through Profit and Loss (FVTPL)

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through Statement of Profit and Loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Debt instruments at amortized cost

A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the Statement of Profit and Loss. The losses arising from impairment are recognized in the Statement of Profit and Loss. This category generally applies to trade and other receivables.

Equity investments

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to profit and loss, even on sale of investment. However, the Company may transfer the cumulative gains and losses within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

The Company has elected to apply the exemption available under Ind AS 101 to continue the carrying value for its investments in subsidiaries and associates as recognized in the financial statements as at the date of transition to Ind ASs, measured as per the previous GAAP as at the date of transition (April 1, 2015).

Impairment of financial assets

Financial assets of the Company comprise of trade receivable and other receivables consisting of loans, deposits, and bank balance. Trade and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. An impairment loss for trade and other receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Impairment losses if any, are recognized in Statement of Profit and Loss for the period.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the group neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised,

ii. Financial liabilities Classification

Financial liabilities are classified as, measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition.

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable and incremental transaction cost. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss. The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Derecognition

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis or, to realize the assets and settle the liabilities simultaneously,

iii Derivative financial instruments

The Company uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss.

p Biological assets

The Company has biological assets in the form of tea leaves and coffee fruits. Biological assets are measured at fair value less cost to sell, with any change therein recognized in the statement of profit and loss under ''Other income'',

q Dividend distribution to equity holders of the Company

The Company recognizes a liability to make cash or non-cash distributions to equity holders of the Company when the distribution is authorized and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in equity.

r Cash and cash equivalents

Cash and cash equivalents for the purpose of statement of cash flow comprises of cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less and short term highly liquid investments. Bank overdraft which are repayable on demand form an integral part of the Company''s cash management, hence bank overdrafts are included as a component of cash and cash equivalents.

s Segment reporting

t Events after reporting date

Where events occurring after the Balance sheet date provides evidence of condition that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed,

u Standards issued but not yet effective

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of cash flows''. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ''Statement of cash flows''. The amendments are applicable to the Group from April 1, 2017. The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is currently evaluating the effect of the above amendments.

Mar 31, 2016

A. Basis of Accounting:

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India (GAAP) and in compliance with the applicable accounting standards and provisions of the Companies Act, 2013 (here after referred to ''the Act''). The preparation of financial statements in conformity with GAAP requires that the management of the Corporation makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans, etc. Difference between actual results and estimates are recognised in the period in which the results are known / materialise.

B. Current-non-current classification:

The Schedule III to the Act requires assets and liabilities to be classified either Current or Non-current.

a. An asset shall be classified as current when it satisfies any of the following criteria:

i) it is expected to be realized in, or is intended for sale or consumption in, the company''s normal operating cycle;

ii) it is held primarily for the purpose of being traded;

iii) it is expected to be realized within twelve months after the reporting date; or

iv) it is Cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. Current assets include the current portion of non-current financial assets.

b. All assets other than current assets shall be classified as non-current.

c. A liability shall be classified as current when it satisfies any of the following criteria:

i) it is expected to be settled in the company''s normal operating cycle;

ii) it is held primarily for the purpose of being traded;

iii) it is due to be settled within twelve months after the reporting date; or

iv) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Current liabilities include the current portion of non-current financial liabilities.

d. All liabilities other than current liabilities shall be classified as non-current.

C. Method of Depreciation of Tangible Fixed Assets: Depreciation in respect of all tangible assets is provided on straight line method over the useful lives of assets based on the evaluation. Depreciation on such assets which are purchased / sold during the period is proportionately charged and for the assets acquired prior to 1st April, 2014, the carrying amount as on 1st April,

D. Valuation of Tangible Fixed Assets:

i) Fixed Assets are valued at cost of acquisition or construction. They are stated at historical costs or other amounts substituted for historical costs (vide note (ii) below). In respect of new projects pre-operative expenses including financing costs attributable to the acquisition / construction of fixed assets (net of income during trial run) upto the date of commencement of commercial production is included in cost.

ii) The Land and Building of the Auto electric component division as on 1st April, 2006 and the Plant and Machinery of South India Branches (Plantations) as on 30th September, 1985 other than additions during that year were revalued on the basis of the then present worth as per valuation made by the external valuers and are stated at revalued amounts. The resultant increase was credited to Revaluation Reserve on the respective dates.

iii) Expenditure in respect of new crops including cost of development is capitalised until the year of maturity of the Plantation.

iv) Fixed Assets held by non-integral foreign branches are stated at cost by converting at the closing rate of exchange at the balance sheet date.

E. Intangible Assets:

Intangible assets are recognised as per the criteria specified in Accounting Standard (AS 26) "Intangible Assets" as notified under section 133 of the Act read with Companies (Accounts) Rules, 2014.

Technical know-how fees for new product development is amortised over the period not exceeding fve years, of agreement with supplier of technology.

Goodwill represents the excess of costs of business acquired over the fair market value of net tangible and identifiable intangible assets.

Amortisation in respect of all the intangible assets is provided on straight line method over the useful lives of assets based on the evaluation and for the assets acquired prior to 1st April, 2014, the carrying amount as on 1st April, 2014 is amortised over the remaining useful life based on an evaluation. The useful life of such intangible assets is as follows:

* The Company believes the useful lives as given above best represent the useful life of these assets based on internal assessment where necessary, which is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act, 2013.

F. Impairment of Assets:

Management evaluates at regular intervals, using external and internal sources whether there is an impairment of any asset. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its net realisable value on eventual disposal. Any loss on account of impairment is expensed as the excess of the carrying amount over the higher of the asset''s net realisable value or present value as determined.

G. Valuation of Investments:

i) Long Term Investments are shown at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognise the decline.

ii) Current Investments are valued at cost or fair / market value whichever is lower.

iii) Long Term Investments include investments in shares of companies registered outside India. They are stated at cost by converting at the rate of exchange prevalent at the time of acquisition thereof, except in case of investment by non-integral foreign branches. Investments made by such foreign branches, are stated at cost by converting at the closing rate of exchange at the balance sheet date.

H. Employee Benefits:

a) Short term employee benefits:

Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered.

b) Post-employment benefits:

i) Provident and Family Pension Fund

The eligible employees of the Corporation are entitled to receive post employment benefits in respect of provident and family pension fund, in which the Corporation make monthly contributions at a specified percentage of the employees''eligible salary (currently 12% of employees''eligible salary). Employees contribute a minimum of 12%, the excess being voluntary contribution.

The contributions are made to the provident fund managed by the trust set up by the Corporation or to the Regional Provident Fund Commissioner (RPFC) which are charged to the Statement of Profit and Loss as incurred. The schemes are considered as defined contribution plan.

ii) Superannuation

The eligible employees of the Corporation are entitled to receive post employment benefits in respect of superannuation fund in which the Corporation makes annual contribution at a specified percentage of the employees''eligible salary. The contributions are made to the ICICI Prudential Life Insurance Co. Ltd. Superannuation is classified as Defned Contribution Plan as the Corporation has no further obligations beyond making the contribution. The Corporation''s contribution to Defned Contribution Plan is charged to statement of profit and loss as incurred.

iii) Gratuity

The Corporation has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees.

The plan provides a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The Corporation accounts for gratuity benefits payable in future based on an independent external actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised in the Statement of Profit and Loss.

c) Other Long-Term Employee Benefits Â Compensated Absences:

The Corporation provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment / availment. The Corporation makes provision for compensated absences based on an independent actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised in the Statement of Profit and Loss.

I. Provisions, Contingent Liabilities And Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements.

J. Valuation of Inventories:

i) Stores and spare parts are valued at lower of cost or net realisable value. Cost is calculated on weighted average basis.

ii) Raw materials are valued at lower of cost or net realisable value. The cost includes purchase price as well as incidental expenses and is calculated on weighted average basis.

iii) Tea stock is valued at cost or net realizable value whichever is lower and inclusive of cess on excise duty. Timber, coffee, pepper and cardamom in stock are valued at since realized / contracted rates or realizable value.

iv) Work-in-progress is valued at cost or net realisable value whichever is lower. Cost is arrived on the basis of absorption costing.

v) Manufactured finished goods of all divisions are valued at cost or net realisable value whichever is lower. Cost is determined on the basis of absorption costing including excise duty paid / provided on packed finished goods.

vi) Traded Finished goods of all divisions are valued at cost or net realisable value whichever is lower.

vii) Real Estate under development comprises of Freehold / Leasehold Land and Buildings at cost, converted from Fixed Assets into Stock-in -Trade and expenses related / attributable to the development / construction of the said properties. The same is valued at lower of cost or net realizable value.

K. Foreign Currency Transactions:

i) Foreign Branches: (Non-integral operations)

a) All assets and liabilities, both monetary and non-monetary are translated at the closing rate;

b) Income and expense items are translated at the average rate prevailing during the year; and

c) All resulting exchange differences are accumulated in a foreign currency translation reserve until the disposal of the net investment in the branch.

ii) Other Transactions:

a) Initial recognition:

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b) Conversion:

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

c) Exchange Differences:

The premium or discount arising at the inception of forward exchange contracts is amortised as expenses or income over the life of the respective contracts. The difference between year-end conversion rate and rate on the date of contract is recognized as exchange difference. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or expense for the year.

L. Export Benefts / Incentives:

Export benefits / incentives in respect of import duty benefits under DEPB scheme or Duty draw back scheme are accounted on accrual basis on the basis of exports made under the said schemes.

M. Revenue Recognition:

i) Revenue in respect of insurance / other claims, interest etc., is recognised only when it is reasonably certain that the ultimate collection will be made.

ii) Sale of products is recognised when the risks and rewards of ownership are passed on to the customers and no significant uncertainty as to its measurability and collectability exists.

iii) Sale of timber is accounted based on sale agreement/sale in auction.

iv) Sale of pepper is accounted based on confirmed contract of sale.

v) Dividend income is accounted when the right to receive payment is established and known. Interest income is recognised on the time proportion basis.

N. Borrowing Cost:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised up to the date when such assets are ready for its intended use and all other borrowing costs are recognised as an expense in the period in which they are incurred.

O. Segment Accounting Policies:

a) Segment assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include inter-corporate deposits, share capital, reserves and surplus, borrowings, and income tax (both current and deferred).

b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include interest income on inter-corporate deposits, interest expense and income tax.

P. Financial Derivatives and commodity hedging transactions:

Outstanding derivative contracts are not marked to market at each balance sheet date. The Corporation assesses the foreseeable losses in respect of such contracts and provision is made for such estimated losses, wherever necessary. Realized gains and losses on such contracts and interest costs in foreign currencies are accounted for at the time of settlement of the underlying transactions.

Q. Taxes on Income:

Income Taxes are accounted for in accordance with Accounting Standard (AS 22) - "Accounting for Taxes on Income", as notified under Section 133 of the Act read with read with Companies (Accounts) Rules, 2014. Income Tax comprises both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using the substantively enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation.

R. Earnings per Share:

The basic and diluted earnings per share (EPS) is computed by dividing Net Proft after tax for the year by weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date.

S. Leases:

i) Lease transactions entered into prior to 1st April, 2002:

a) Lease rentals in respect of assets acquired under lease are charged to Statement of Profit & Loss.

ii) Lease transactions entered into on or after 1st April, 2002:

a) Assets acquired under lease where the Corporation has substantially all the risks and rewards incidental to ownership are classified as finance leases. Such assets are capitalised at the inception of the lease at the lower of the fair value or the present value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

b) Assets acquired on leases where significant portions of the risks and rewards incidental to ownership are retained by the lessors, are classified as operating leases. Lease rentals are charged to the Statement of Profit & Loss on accrual basis.

a) The Corporation has only one class of equity share having par value of Rs. 2/- (Previous Year Rs. 2/-) per share.

b) Each holder of equity shares is entitled to one vote per share.

c) The Corporation declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

d) During the year ended 31st March, 2016, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 1/- (Previous Year Rs. 1/-) for every share of Rs. 2/- each.

The total dividend appropriation for the year ended 31st March, 2016 amounted to Rs. 839.78 lakhs (Previous Year Rs. 697.72 lakhs) including corporate dividend tax ofRs. 142.06 Lakhs (Previous Year Nil).

e) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(a) Rupee loan from HDFC Bank Limited of Rs. 3,000 Lakhs, - current outstanding - Rs. 2,250 Lakhs of which is repayable in 4 equal half yearly installments of Rs. 750 Lakhs each from 3rd March 2016 to 3rd September 2017. The loan is secured by extension of charge Equitable Mortgage by deposit of title deeds of Singampatti estates together with Buildings and structures thereon in favour of HDFC Bank Limited. The rate of interest on the loan is ranging from 9.1% to 10.5%.

(b) Rupee loan from Kotak Mahindra Bank Limited of Rs. 5,000 Lakhs, - current outstanding - Rs. 5,000 Lakhs of which Rs.1,500 lakhs is repayable in 8 equal quarterly installments of Rs.112.50 lakhs each, from 30th June, 2017 to 30th June, 2019 and 4 equal quarterly installments of Rs. 150 lakhs each, from 30th September, 2019 to 30th June, 2020; Rs. 3,500.00 lakhs is repayable in 8 equal quarterly installments of Rs. 262.50 lakhs each, from 30th September, 2017 to 31st March, 2019 and 4 equal quarterly installments of Rs. 350.00 lakhs each, from 30th June, 2019 to 31st March, 2020. The loan is secured by extension of charge of an Equitable Mortgage by deposit of title deeds of Akurdi Land together with Buildings and structures thereon in favour of Kotak Mahindra Bank Limited. The rate of interest on the loan is ranging from 9.1% to 11%.

(c) Rupee loan from The Hongkong and Shanghai Banking Corporation Limited of Rs. 2,500 Lakhs, - current outstanding - Rs. 2,000 Lakhs is repayable in 5 equal half yearly installments of Rs. 500 Lakhs each from 23rd December 2015 to 23rd December 2017.The loan is secured by extension of charge of an Equitable Mortgage by deposit of title deeds of Mudis estates together with Buildings and structures thereon in favour of said bank. The rate of interest on the loan is ranging from 9.1% to 10.5%.

(d) Rupee loan from The Federal Bank Limited of Rs. 2,500 Lakhs, - current outstanding - Rs. 2,197 Lakhs is repayable in 18 quarterly installments of Rs. 138.89 Lakhs each from September 2016 to December 2020.The loan is secured by extension of pari passu charge of an Equitable Mortgage by deposit of title deeds of Mudis estates together with Buildings and structures thereon in favour of said bank. The rate of interest on the loan is ranging from 9.1% to 10.5%.

(e) Loan against vehicles are secured by lien on vehicle purchased.

(a) Cash Credit from Axis Bank Limited of Rs. 2,868.72 Lakhs (Previous Year Rs. 895.20 Lakhs), is secured by hypothecation of present and future stocks, book debts and other current assets on pari-passu basis and a collateral on Elkhill Estates. The rate of interest on the loan is ranging from 11% to 13%.

(b) Cash Credit from HDFC Bank Limited of Rs. 1,825.93 Lakhs (Previous Year Rs. 1,960.27 Lakhs) is secured by hypothecation of present and future stocks, book debts and other current assets on pari-passu basis and a collateral on Singampatti Estates. The rate of interest on the loan is ranging from 11% to 13%.

(c) Short term loan and Agriculture loan from HDFC Bank Limited of Rs. 700 Lakhs (Previous Year Rs. Nil) and Rs. 361.13 Lakhs (Previous Year Rs. 253.99 Lakhs) is secured by hypothecation of present and future stocks, book debts and other current assets on pari-passu basis and a collateral on Singampatti Estates. The rate of interest on the loan is ranging from 9% to 11%.

(d) Packing Credit/ Cash Credit / WCDL from The Hongkong and Shanghai Banking Corporation Limited of Rs. 2,200.88 Lakhs (Previous Year Rs. 4,431.75) is secured by hypothecation of present and future stocks, book debts and other current assets on pari-passu basis and a collateral on Mudis Estates. The rate of interest on the loan is ranging from 9% to 11%.

(e) Packing credit from Federal Bank Limited of Rs. 2,788.45 Lakhs (Previous Year Rs. 232.25 Lakhs) is secured by hypothecation of present and future stocks, book debts and other current assets on pari-passu basis. The rate of interest on the loan is 6 Months LIBOR plus 1 %.

(f) Cash Credit/ Overdraft from Kotak Bank Limited of Rs. 442.10 Lakhs (Previous Year Rs. Nil) is secured by hypothecation of present and future stocks, book debts and other current assets on pari-passu basis. The rate of interest on the loan is ranging from 9% to 11%.

(g) Outstanding unsecured loan of Rs. 6,500.00 Lakhs (Previous YearRs.6,500 Lakhs) is payable to banks. The tenure of loan is short term and it is repayable on demand. The rate of interest on the loan is ranging from 9% to 11.5%.

(h) During last year the Corporation had obtained Inter Corporate Deposit of Rs. 4,000 Lakhs (Previous year Rs. 4,000 Lakhs) from Britannia Industries Limited (Subsidiary company) which carries interest @ 12%. It is unsecured and repayable on demand.

Mar 31, 2013

A. Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India (GAAP) and in compliance with the applicable accounting standards and provisions of the Companies Act, 1956.

The preparation of financial statements in conformity with GAAP requires that the management of the Corporation makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Difference between actual results and estimates are recognised in the period in which the results are known/materialise.

During the year ended 31 March, 2012 (effective 1 April 2011), revised Schedule VI notified under the Act has become applicable to the Company for preparation and presentation of its Financial Statements. The adoption of the revised Schedule VI does not impact recognisation and measurement principles followed for preparation of Financial Statements. All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI.

B. Method of Depreciation, Deletion and Amortisation of Tangible Fixed Assets:

(i) Depreciation on Fixed Assets is provided on Straight Line basis except on assets of Sunmica Division other than Plant & Machinery, and Moulds and Dies of Weighing Products Division, at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on Fixed Assets of Sunmica Division other than Plant & Machinery is provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on Moulds and Dies of Weighing Products Division is provided on straight line basis at the rate of 20% based on the useful life as estimated by the Corporation.

(ii) Depreciation on revalued assets of Sunmica Division, South India branches (Plantations) and Auto Ancillary division (erstwhile Electromags Automotive Products Private Limited) for the year have been calculated on the revalued cost on the basis of their expected future life as estimated by the valuers. The difference between depreciation on revalued cost and original cost has been withdrawn from Revaluation Reserve and credited to Statement of Profit and Loss.

(iii) Cost of Leasehold Land is amortised over the period of lease.

(iv) Assets costing less than Rs. 5000 are fully depreciated in the year of purchase.

(v) Auto ancillary division (erstwhile Electromags Automotive Products Private Limited) carries out at every year end, technical evaluation of the moulds and dies for revising the economic useful life/usability of the assets and based on which, it writes down the moulds and dies which are not usable due to change in models, customer order etc.

C. Valuation of Tangible Fixed Assets:

(i) Fixed Assets are valued at cost of acquisition or construction. They are stated at historical costs or other amounts substituted for historical costs (vide note (ii) below). In respect of new projects pre-operative expenses including financing costs attributable to the acquisition/construction of fixed assets (net of income during trial run) upto the date of commencement of commercial production is included in cost.

(ii) The Land and Building of the Auto-Ancillary division (erstwhile Electromags Automotive Products Private Limited) as on 1st April, 2006 and the Plant and Machinery of Electronics Division and South India Branches (Plantations) as on 30th September, 1985 other than additions during that year were revalued on the basis of the then present worth as per valuation made by the external valuers and are stated at revalued amounts. The resultant increase was credited to Revaluation Reserve on the respective dates.

(iii) Expenditure in respect of new crops including cost of development is capitalised until the year of maturity of the Plantation.

(iv) Fixed Assets held by non-integral foreign branches are stated at cost by converting at the closing rate of exchange at the balance sheet date.

D. Intangible Assets :

Intangible assets are recognised as per the criteria specified in Accounting Standard (AS 26) "Intangible Assets" as notified under the Companies (Accounting Standards) Rules, 2006 and amortized as follows:

(i) Technical Know How Fees

Technical know-how fees for new product development is amortised over the period not exceeding five years, of agreement with supplier of technology.

(ii) Goodwill

Goodwill represents the excess of costs of business acquired over the fair market value of net tangible and identifiable intangible assets.

Goodwill is amortised proportionately over the period not exceeding five years from the date of acquisition of the business.

(iii) Computer Software

In respect of auto ancillary division (erstwhile Electromags Automotive Products Private Limited), ERP related costs are amortised over a period of 5 years. For other divisions, computer software costs are amortised over the period not exceeding ten years based on the management''s estimate of its useful life.

E. Impairment of Assets:

Management evaluates at regular intervals, using external and internal sources whether there is an impairment of any asset. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its net realisable value on eventual disposal. Any loss on account of impairment is expensed as the excess of the carrying amount over the higher of the asset''s net realisable value or present value as determined.

F. Valuation of Investments:

(i) Long Term Investments are shown at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognise the decline.

(ii) Current Investments are valued at cost or fair/market value whichever is lower.

(iii) Long Term Investments include investments in shares of companies registered outside India. They are stated at cost by converting at the rate of exchange prevalent at the time of acquisition thereof, except in case of investment by non-integral foreign branches. Investments made by such foreign branches, are stated at cost by converting at the closing rate of exchange at the balance sheet date.

G. Employee Benefits :

(a) Short term employee benefits:

Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered.

(b) Post-employment benefits:

(i) Provident and Family Pension Fund

The eligible employees of the Corporation are entitled to receive post employment benefits in respect of provident and family pension fund, in which the Corporation make monthly contributions at a specified percentage of the employees'' eligible salary (currently 12% of employees'' eligible salary). Employees contribute a minimum of 12%, the excess being voluntary contribution.

The contributions are made to the provident fund managed by the trust set up by the Corporation or to the Regional Provident Fund Commissioner (RPFC) which are charged to the Statement of Profit and Loss as incurred. The schemes are considered as defined contribution plan.

(ii) Superannuation

The eligible employees of the Corporation are entitled to receive post employment benefits in respect of superannuation fund in which the Corporation makes annual contribution at a specified percentage of the employees'' eligible salary. The contributions are made to the ICICI Prudential Life Insurance Co. Ltd. Superannuation is classified as Defined Contribution Plan as the Corporation has no further obligations beyond making the contribution. The Corporation''s contribution to Defined Contribution Plan is charged to statement of profit and loss as incurred.

(iii) Gratuity

The Corporation has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees.

The plan provides a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The Corporation accounts for gratuity benefits payable in future based on an independent external actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised in the Statement of Statement of Profit and Loss.

(c) Other Long-Term Employee Benefits - Compensated Absences:

The Corporation provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment/ availment. The Corporation makes provision for compensated absences based on an independent actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised in the Statement of Profit and Loss.

H. Provisions, Contingent Liabilities And Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements.

I. Valuation of Inventories:

(i) Stores and spare parts are valued at lower of cost or net realisable value. Cost is calculated on weighted average basis, except in the case of Sunmica Division, where it is on First in First out basis.

(ii) Raw materials are valued at lower of cost or net realisable value. The cost includes purchase price as well as incidental expenses and is calculated on weighted average basis, except in the case of Sunmica Division, where it is on First in First out basis.

(iii) Tea stock is valued at cost or net realizable value whichever is lower and inclusive of cess on excise duty. Timber, coffee, pepper and cardamom in stock are valued at since realized/ contracted rates or realizable value.

(iv) Work-in-progress is valued at cost or net realisable value whichever is lower. Cost is arrived on the basis of absorption costing.

(v) Manufactured finished goods of all divisions are valued at cost or net realisable value whichever is lower. Cost is determined on the basis of absorption costing including excise duty paid/ provided on packed finished goods.

(vi) Traded Finished goods of all divisions are valued at cost or net realisable value whichever is lower.

(vii) Real Estate under development comprises of Freehold/Leasehold Land and Buildings at cost, converted from Fixed Assets into Stock-in -Trade and expenses related/attributable to the development/construction of the said properties. The same is valued at lower of cost or net realizable value.

J. Foreign Currency Transactions:

(i) Foreign Branches: (Non-integral operations)

(a) All assets and liabilities, both monetary and non-monetary are translated at the closing rate;

(b) Income and expense items are translated at the average rate prevailing during the year; and

(c) All resulting exchange differences are accumulated in a foreign currency translation reserve until the disposal of the net investment in the branch.

(ii) Other Transactions:

(a) Initial recognition :

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(b) Conversion :

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

(c) Exchange Differences :

The premium or discount arising at the inception of forward exchange contracts is amortised as expenses or income over the life of the respective contracts. The difference between year-end conversion rate and rate on the date of contract is recognized as exchange difference. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or expense for the year.

K. Export Benefits/Incentives:

Export benefits/incentives in respect of import duty benefits under DEPB scheme are accounted on accrual basis on the basis of exports made under DEPB scheme.

L. Revenue Recognition:

(i) Revenue in respect of insurance/other claims, interest etc., is recognised only when it is reasonably certain that the ultimate collection will be made.

(ii) Sale of products is recognised when the risks and rewards of ownership are passed on to the customers and no significant uncertainty as to its measurability and collectability exists.

(iii) Sale of timber is accounted based on sale agreement/sale in auction.

(iv) Sale of pepper is accounted based on confirmed contract of sale.

(v) Dividend income is accounted when the right to receive payment is established and known. Interest income is recognised on the time proportion basis.

M. Borrowing Cost :

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to the acquisition/construction of qualifying fixed assets are capitalised up to the date when such assets are ready for its intended use and all other borrowing costs are recognised as an expense in the period in which they are incurred.

N. Segment Accounting Policies :

(a) Segment assets and liabilities :

All Segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include inter-corporate deposits, share capital, reserves and surplus, borrowings, and income tax (both current and deferred).

(b) Segment revenue and expenses :

Segment revenue and expenses are directly attributable to segment. It does not include interest income on inter-corporate deposits, interest expense and income tax.

O. Financial Derivatives and commodity hedging transactions:

Outstanding derivative contracts are not marked to market at each balance sheet date. The Corporation assesses the foreseeable losses in respect of such contracts and provision is made for such estimated losses, wherever necessary. Realized gains and losses on such contracts and interest costs in foreign currencies are accounted for at the time of settlement of the underlying transactions.

P. Taxes on Income :

Income Taxes are accounted for in accordance with Accounting Standard (AS 22) - "Accounting for Taxes on Income", as notified under the Companies (Accounting Standards) Rules, 2006. Income Tax comprises both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Provision for Fringe Benefits Tax is made in accordance with Chapter XII-H of the Income Tax Act, 1961. The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using the substantively enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation.

Q. Earnings per Share:

The basic and diluted earnings per share (EPS) is computed by dividing Net Profit after tax for the year by weighted average number of equity shares outstanding during the year.

R. Leases :

i. Lease transactions entered into prior to 1st April, 2002 :

Lease rentals in respect of assets acquired under lease are charged to Statement of Profit & Loss.

ii. Lease transactions entered into on or after 1st April, 2002 :

(a) Assets acquired under lease where the Corporation has substantially all the risks and rewards incidental to ownership are classified as finance leases. Such assets are capitalised at the inception of the lease at the lower of the fair value or the present value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

(b) Assets acquired on leases where significant portions of the risks and rewards incidental to ownership are retained by the lessors, are classified as operating leases. Lease rentals are charged to the Statement of Profit & Loss on accrual basis.

S. Amalgamation of Corporation''s wholly owned subsidiary, Electromags Automotive Products Private Limited (EAPL):

The Scheme of Amalgamation (''the Scheme'') of Electromags Automotive Products Private Limited (''the Amalgamating Company'') with the Corporation was sanctioned by the Hon''ble High Court of Judicature at Madras on 24th August, 2012. The Company has filed the certified copy of the Order with Registrar of Companies on 3rd September, 2012.

In accordance with the scheme, all assets and liabilities of the Amalgamating Company were transferred to and vested in the Corporation with effect from 1st April, 2011 (''The Appointed Date'') and recorded by the Company at their book values. The Scheme has accordingly been given effect to in these financial statements which include the assets and liabilities of the Amalgamating Company with effect from 1st April, 2011 and the results of operations for the year ended 31st March, 2012. In terms of the Scheme, the book value of assets and liabilities are required to be adopted as at 1st April, 2011.

Mar 31, 2012

A. Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India (GAAP) and in compliance with the applicable accounting standards and provisions of the Companies Act, 1956.

The preparation of financial statements in conformity with GAAP requires that the management of the Corporation makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Difference between actual results and estimates are recognized in the period in which the results are known/materialize.

This is the first year of application of the revised Schedule VI to the Companies Act, 1956 for the preparation of the financial statements of the Company. The revised Schedule VI introduces some significant conceptual changes as well as new disclosures. These include classification of all assets and liabilities' into current and non-current. The previous year figures have also undergone a major reclassification to comply with the requirements of the revised Schedule VI.

B. Method of Depreciation, Depletion and Amortization of Tangible Fixed Assets:

(i) Depreciation on Fixed Assets is provided on Straight Line basis except on assets of Sunmica Division other than Plant & Machinery, and Moulds and Dies of Weighing Products Division, at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on Fixed Assets of Sunmica Division other than Plant & Machinery is provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on Moulds and Dies of Weighing Products Division is provided on straight line basis at the rate of 20% based on the useful life as estimated by the Corporation.

(ii) Depreciation on revalued assets of Sunmica Division and South India Branches (Plantations) for the year has also been calculated on the revalued cost on the basis of their expected future life as estimated by the valuers. The difference between depreciation on revalued cost and original cost has been withdrawn from Revaluation Reserve and credited to Profit and Loss Account.

(iii) Cost of Leasehold Land is amortized over the period of lease.

(iv) Assets costing less than Rs 5000 are fully depreciated in the year of purchase.

C. Valuation of Tangible Fixed Assets:

(i) Fixed Assets are valued at cost of acquisition or construction. They are stated at historical costs or other amounts substituted for historical costs [vide note (ii) below]. In respect of new projects pre-operative expenses including financing costs attributable to the acquisition/construction of fixed assets (net of income during trial run) up to the date of commencement of commercial production is included in cost.

(ii) The Plant and Machinery of Sunmica Division, Electronics Division and South India Branches (Plantations) as on 30th September, 1985 other than additions during that year were revalued on the basis of the then present worth as per valuation made by the external valuers and are stated at revalued amounts. The resultant increase was credited to Revaluation Reserve.

(iii) Expenditure in respect of new crops including cost of development is capitalized until the year of maturity of the Plantation.

(iv) Fixed Assets held by non-integral foreign branches are stated at cost by converting at the closing rate of exchange at the balance sheet date.

D. Intangible Assets:

Intangible assets are recognized as per the criteria specified in Accounting Standard (AS 26) "Intangible Assets" as notified under the Companies (Accounting Standards) Rules, 2006 and amortized as follows:

(i) Technical Know How Fees

Technical knowhow fees for new product development is amortized over the period not exceeding five years, of agreement with supplier of technology.

(ii) Goodwill

Goodwill represents the excess of costs of business acquired over the fair market value of net tangible and identifiable intangible assets.

Goodwill is amortized proportionately over the period not exceeding five years from the date of acquisition of the business.

(iii) Computer Software

Computer software is amortized over the period not exceeding ten years based on the management's estimate of its useful life.

E. Impairment of Assets:

Management evaluates at regular intervals, using external and internal sources whether there is an impairment of any asset. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its net realizable value on eventual disposal. Any loss on account of impairment is expensed as the excess of the carrying amount over the higher of the asset's net realizable value or present value as determined.

F. Valuation of Investments:

(i) Long Term Investments are shown at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognize the decline.

(ii) Current Investments are valued at cost or fair/market value whichever is lower.

(iii) Long Term Investments include investments in shares of companies registered outside India. They are stated at cost by converting at the rate of exchange prevalent at the time of acquisition thereof, except in case of investment by non-integral foreign branches. Investments made by such foreign branches, are stated at cost by converting at the closing rate of exchange at the balance sheet date.

G. Employee Benefits:

(a) Short term employee benefits:

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

(b) Post-employment benefits:

(i) Provident and Family Pension Fund

The eligible employees of the Company are entitled to receive post employment benefits in respect of provident and family pension fund, in which the Company make monthly contributions at a specified percentage of the employees' eligible salary (currently 12% of employees' eligible salary). Employees contribute a minimum of 12%, the excess being voluntary contribution.

The contributions are made to the provident fund managed by the trust set up by the Company or to the Regional Provident Fund Commissioner (RPFC) which are charged to the Statement of Profit and Loss as incurred. The schemes are considered as defined contribution plan.

(ii) Superannuation

The eligible employees of the Company are entitled to receive post employment benefits in respect of superannuation fund in which the Company makes annual contribution at a specified percentage of the employees' eligible salary. The contributions are made to the ICICI Prudential Life Insurance Co. Ltd.. Superannuation is classified as Defined Contribution Plan as the Company has no further obligations beyond making the contribution. The Company's contribution to Defined Contribution Plan is charged to Statement of Profit and Loss as incurred.

(iii) Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees.

The plan provides a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The Company accounts for gratuity benefits payable in future based on an independent external actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised in the Statement of Profit and Loss.

(c) Other Long-Term Employee Benefits - Compensated Absences:

The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment/ availment. The Company makes provision for compensated absences based on an independent actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognized in the Statement of Profit and Loss.

H. Provisions, Contingent Liabilities And Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

I. Valuation of Inventories:

(i) Stores and spare parts are valued at lower of cost or net realizable value. Cost is calculated on weighted average basis except in the case of Sunmica Division, where it is on First in First out basis.

(ii) Raw materials are valued at lower of cost or net realizable value. The cost includes purchase price as well as incidental expenses and is calculated on weighted average basis except in the case of Sun mica Division, where it is on First in First out basis.

(iii) Tea stock is valued at cost or net realizable value whichever is lower and inclusive of cess on excise duty. Timber, coffee, pepper and cardamom in stock are valued at since realized/ contracted rates or realizable value.

(iv) Work-in-progress is valued at cost or net realizable value whichever is lower. Cost is arrived on the basis of absorption costing.

(v) Manufactured finished goods of Sunmica Division, Weighing Products Division, Springs Division and Dental Products Division are valued at cost or net realizable value whichever is lower. Cost is determined on the basis of absorption costing including excise duty paid/provided on packed finished goods.

(vi) Traded Finished goods of Sunmica Division, Weighing Products Division, Springs Division and Dental Products Division are valued at cost or net realizable value whichever is lower.

(vii) Real Estate under development comprises of Freehold/Leasehold Land and Buildings at cost, converted from Fixed Assets into Stock-in-Trade and expenses related/attributable to the development/construction of the said properties. The same is valued at lower of cost or net realizable value.

J. Foreign Currency Transactions:

(i) Foreign Branches: (Non-integral operations)

(a) All assets and liabilities, both monetary and non-monetary are translated at the closing rate;

(b) Income and expense items are translated at the average rate prevailing during the year; and

(c) All resulting exchange differences are accumulated in a foreign currency translation reserve until the disposal of the net investment in the branch.

(ii) Other Transactions:

(a) Initial recognition:

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(b) Conversion:

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

(c) Exchange Differences:

Exchange differences arising on the settlement/conversion of monetary items are recognized as income or expense in the year in which they arise except in case of exchange differences in conversion of Long Term Monetary Items. Exchange differences arising on conversion of Long Term Monetary Items are accounted in "Foreign Currency Monetary Item Translation Difference Account" to be amortized up to 31st March, 2011.

The premium or discount arising at the inception of forward exchange contracts is amortized as expenses or income over the life of the respective contracts. The difference between yearend conversion rate and rate on the date of contract is recognized as exchange difference. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change except for exchange difference in respect of contracts relating to Long Term Monetary Items which are amortized up to 31st March, 2011 or date of expiry of contract, whichever is earlier. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or expense for the year.

K. Export Benefits/Incentives:

Export benefits/incentives in respect of import duty benefits under DEPB scheme are accounted on accrual basis on the basis of exports made under DEPB scheme.

L. Revenue. Recognition:

(i) Revenue in respect of insurance/other claims, interest etc., is recognized only when it is reasonably certain that the ultimate collection will be made.

(ii) Sale of products is recognized when the risks and rewards of ownership are passed on to the customers and no significant uncertainty as to its measurability and collectability exists.

(iii) Sale of timber is accounted based on sale agreement/sale in auction.

(iv) Sale of pepper is accounted based on confirmed contract of sale.

(v) Dividend income is accounted when the right to receive payment is established and known. Interest income is recognized on the time proportion basis.

M. Borrowing Cost:

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to the acquisition/construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and all other borrowing costs are recognized as an expense in the period in which they are incurred.

N. Segment Accounting Policies:

(a) Segment assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include inter-corporate deposits, share capital, reserves and surplus, borrowings, and income tax (both current and deferred).

(b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include interest income on inter-corporate deposits, interest expense and income tax.

O. Financial Derivatives and commodity hedging transactions:

Outstanding derivative contracts are not marked to market at each balance sheet date. The Corporation assesses the foreseeable losses in respect of such contracts and provision is made for such estimated losses, wherever necessary. Realized gains and losses on such contracts and interest costs in foreign currencies are accounted for at the time of settlement of the underlying transactions.

p. Taxes on Income:

Income Taxes are accounted for in accordance with Accounting Standard (AS 22) - "Accounting for Taxes on Income", as notified under the Companies (Accounting Standards) Rules, 2006. Income Tax comprises both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Provision for Fringe Benefits Tax is made in accordance with Chapter Xll-H of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using the substantively enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

Q. Earnings per Share:

The basic and diluted earnings per share (EPS) is computed by dividing Net Profit after tax for the year by weighted average number of equity shares outstanding during the year.

R. Leases: ,

(i) Lease transactions entered into prior to 1st April, 2002:

Lease rentals in respect of assets acquired under lease are charged to Statement of Profit 8 Loss.

(ii) Lease transactions entered into on or after 1st April, 2002:

(a) Assets acquired under lease where the Corporation has substantially all the risks and rewards incidental to ownership are classified as finance leases. Such assets are capitalized at the inception of the lease at the lower of the fair value or the present value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

(b) Assets acquired on leases where significant portions of the risks and rewards incidental to ownership are retained by the lessors, are classified as operating leases. Lease rentals are charged to the Statement of Profit & Loss on accrual basis.

Mar 31, 2010

A. Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India (GAAP) and in compliance with the applicable accounting standards and provisions of the Companies Act, 1956.

The preparation of financial statements in conformity with GAAP requires that the management of the Corporation makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Difference between actual results and estimates are recognised in the period in which the results are known/materialise.

B. Method of Depreciation, Depletion and Amortisation of Tangible Fixed Assets:

(i) Depreciation on Fixed Assets is provided on Straight Line basis except on assets of Sunmica Division other than Plant & Machinery, and Moulds and Dies of Weighing Products Division, at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on Fixed Assets of Sunmica Division other than Plant & Machinery is provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on Moulds and Dies of Weighing Products Division is provided on straight line basis at the rate of 20% based on the useful life as estimated by the Corporation.

(ii) Depreciation on revalued assets of Sunmica Division and South India Branches (Plantations) for the year has also been calculated on the revalued cost on the basis of their expected future life as estimated by the valuers. The difference between depreciation on revalued cost and original cost has been withdrawn from Revaluation Reserve and credited to Profit and Loss Account.

(iii) Cost of Leasehold Land is amortised over the period of lease.

(iv) Assets costing less than Rs. 5000 are fully depreciated in the year of purchase.

C. Valuation of Tangible Fixed Assets:

(i) Fixed Assets are valued at cost of acquisition or construction. They are stated at historical costs or other amounts substituted for historical costs (vide note (ii) below). In respect of new projects pre-operative expenses including financing costs attributable to the acquisition/construction of fixed assets (net of income during trial run) upto the date of commencement of commercial production is included in cost.

(ii) The Plant and Machinery of Sunmica Division, Electronics Division and South India Branches (Plantations) as on 30th September, 1985 other than additions during that year were revalued on the basis of the then present worth as per valuation made by the external valuers and are stated at revalued amounts. The resultant increase was credited to Revaluation Reserve.

(iii) Expenditure in respect of new crops including cost of development is capitalised until the year of maturity of the Plantation.

(iv) Fixed Assets held by non-integral foreign branches are stated at cost by converting at the closing rate of exchange at the balance sheet date.

D. Intangible Assets:

Intangible assets are recognised as per the criteria specified in Accounting Standard (AS - 26) "Intangible Assets" as notified under the Companies (Accounting Standards) Rules, 2006 and amortised as follows:

(i) Technical Know How Fees

Technical know how fees for new product development is amortised over the period not exceeding five years, of agreement with supplier of technology.

(ii) Goodwill

Goodwill represents the excess of costs of business acquired over the fair market value of net tangible and identifiable intangible assets.

Goodwill is amortised proportionately over the period not exceeding five years from the date of acquisition of the business.

(iii) Computer Software

Computer software is amortised over the period not exceeding ten years based on the managements estimate of its useful life.

E. Impairment of Assets:

Management evaluates at regular intervals, using external and internal sources whether there is an impairment of any asset. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its net realisable value on eventual disposal. Any loss on account of impairment is expensed as the excess of the carrying amount over the higher of the assets net realisable value or present value as determined.

F. Valuation of Investments:

(i) Long Term Investments are shown at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognise the decline.

(ii) Current Investments are valued at cost or fair/market value whichever is lower.

(iii) Long Term Investments include investments in shares of companies registered outside India. They are stated at cost by converting at the rate of exchange prevalent at the time of acquisition thereof, except in case of investment by non-integral foreign branches. Investments made by such foreign branches, are stated at cost by converting at the closing rate of exchange at the balance sheet date.

G. Employee Benefits:

(i) The Corporation contributes to Government provident fund as required by the statute, which is a defined contribution plan. The same is charged to Profit and Loss account.

The Corporation contributes to recognized provident fund as required under the rules in respect of few employees. This is a defined benefit plan and the contribution is charged to Profit and Loss account.

(ii) The amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service. These benefits include performance incentives and compensated absences.

(iii) Gratuity contribution made to gratuity fund on the basis of actuarial valuation, using projected unit credit method carried out as at the end of the year, is charged to revenue. Actuarial gains/ losses are immediately taken to the profit and loss account.

(iv) Superannuation Fund is a defined contribution scheme and contribution is made to approved Superannuation Fund in respect of eligible employees as required under the rules and is recognized as an expense in the year in which it is incurred.

H. Provisions, Contingent Liabilities And Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements.

I. Valuation of Inventories:

(i) Stores and spare parts are valued at lower of cost or net realisable value. Cost is calculated on weighted average basis except in the case of Sunmica Division, where it is on First in First out basis.

(ii) Raw materials are valued at lower of cost or net ealisable value. The cost includes purchase price as well as incidental expenses and is calculated on weighted average basis except in the case of Sunmica Division, where it is on First in First out basis.

(iv) Work-in-progress is valued at cost or net realisable value whichever is lower. Cost is arrived on the basis of absorption costing. (v) Manufactured finished goods of Sunmica Division, Weighing Products Division, Springs Division and Dental Products Division are valued at cost or net realisable value whichever is lower. Cost is determined on the basis of absorption costing including excise duty paid/provided on packed finished goods.

(vi) Traded Finished goods of Sunmica Division, Weighing Products Division, Springs Division and Dental Products Division are valued at cost or net realisable value whichever is lower.

(vii) Real Estate under development comprises of Freehold/Leasehold Land and Buildings at cost, converted from Fixed Assets into Stock-in - Trade and expenses related/attributable to the development/construction of the said properties. The same is valued at lower of cost or net realizable value.

J. Foreign Currency Transactions:

(i) Foreign Branches: (Non-integral operations)

(a) All assets and liabilities, both monetary and non-monetary are translated at the closing rate;

(b) Income and expense items are translated at the average rate prevailing during the year; and

(c) All resulting exchange differences are accumulated in a foreign currency translation reserve until the disposal of the net investment in the branch.

(ii) Other Transactions:

(a) Initial recognition:

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(b) Conversion:

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

(c) Exchange Differences :

Exchange differences arising on the settlement/conversion of monetary items are recognised as income or expense in the year in which they arise except in case of exchange differences in conversion of Long Term Monetary Items. Exchange differences arising on conversion of Long Term Monetary Items are accounted in "Foreign Currency Monetary Item Translation Difference Account" to be amortised upto 31st March, 2011. The premium or discount arising at the inception of forward exchange contracts is amortised as expenses or income over the life of the respective contracts. The difference between year end conversion rate and rate on the date of contract is recognized as exchange difference. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change except for exchange difference in respect of contracts relating to Long Term Monetary Items which are amortised upto 31st March, 2011 or date of expiry of contract, whichever is earlier. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or expense for the year.

K. Export Benefits/Incentives:

Export benefits/incentives in respect of import duty benefits under DEPB scheme are accounted on accrual basis on the basis of exports made under DEPB scheme.

L. Revenue Recognition:

(i) Revenue in respect of insurance/other claims, interest etc., is recognised only when it is reasonably certain that the ultimate collection will be made.

(ii) Sale of products is recognised when the risks and rewards of ownership are passed on to the customers and no significant uncertainty as to its measurability and collectability exists.

(iii) Sale of timber is accounted based on sale agreement/sale in auction. (iv) Sale of pepper is accounted based on confirmed contract of sale.

M. Borrowing Cost:

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to the acquisition/construction of qualifying fixed assets are capitalised up to the date when such assets are ready for its intended use and all other borrowing costs are recognised as an expense in the period in which they are incurred.

N. Segment Accounting Policies:

(a) Segment assets and liabilities:

All Segment assets and liabilities are directly attributable to the segment.

Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment assets and liabilities do not include inter-corporate deposits, share capital, reserves and surplus, borrowings, and income tax (both current and deferred).

(b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include interest income on inter-corporate deposits, interest expense and income tax.

O. Financial Derivatives and commodity hedging transactions:

Outstanding derivative contracts are not marked to market at each balance sheet date. The Corporation assesses the foreseeable losses in respect of such contracts and provision is made for such estimated losses, wherever necessary. Realized gains and losses on such contracts and interest costs in foreign currencies are accounted for at the time of settlement of the underlying transactions.

P. Taxes on Income:

Income Taxes are accounted for in accordance with Accounting Standard (AS - 22) - "Accounting for Taxes on Income", as notified under the Companies (Accounting Standards) Rules, 2006. Income

Tax comprises both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Provision for Fringe Benefits Tax is made in accordance with Chapter XII-H of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using the substantively enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation.

Q. Leases:

i. Lease transactions entered into prior to 1st April, 2002:

Lease rentals in respect of assets acquired under lease are charged to Profit & Loss Account. ii. Lease transactions entered into on or after 1st April, 2002:

(a) Assets acquired under lease where the Corporation has substantially all the risks and rewards incidental to ownership are classified as finance leases. Such assets are capitalised at the inception of the lease at the lower of the fair value or the present value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

(b) Assets acquired on leases where significant portions of the risks and rewards incidental to ownership are retained by the lessors, are classified as operating leases. Lease rentals are charged to the Profit & Loss Account on accrual basis.

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